Minister of Agriculture and Agri-Food, Lawrence MacAulay, today released a list of designated regions in Alberta, Ontario and Quebec where livestock tax deferrals have been authorized for 2016 due to drought.
The livestock tax deferral provisions allow livestock producers in prescribed drought regions to defer a portion of their 2016 sale proceeds of breeding livestock until the next year to help replenish the herd. The cost of replacing the animals in the next year offsets the deferred income, thereby reducing the tax burden associated with the original sale.
Eligibility for the tax deferral is limited to those producers located inside the designated areas prescribed as drought regions. Producers can request the tax deferral when filing their 2016 income tax returns.
Source : Agriculture and Agri-Food Canada