The final list of designated regions where livestock tax deferral has been authorized for 2016 due to drought conditions in British Columbia, Alberta, Ontario, Quebec and Nova Scotia is now available.
The livestock tax deferral provision allows producers in designated drought regions who are facing feed shortages, to defer a portion of their sale proceeds of breeding livestock to the next year. The cost of replacing the animals in the next year offsets the deferred income, thereby reducing the tax burden associated with the original sale. Eligible producers can request the tax deferral when filing their 2016 income tax returns, or if they have already filed, submit an adjustment request directly to the Canada Revenue Agency.
For 2017, federal officials are working closely with their provincial counterparts and emergency management personnel to understand the impacts of the current wild fires in British Columbia on agricultural operations. Agriculture and Agri-Food Canada recognizes the pressure B.C. livestock producers are under and will work with them and the provincial government to explore all options for assistance, including the potential for livestock tax deferral.
Source : Agriculture and Agri-Food Canada