Alberta Agriculture and Forestry has a pair of resources available to help producers with the federal livestock tax referral.
“Agriculture Canada recently released a list of designated regions on the prairies where tax deferrals have been authorized for 2015,” says Rick Dehod, farm financial specialist, Alberta Agriculture and Forestry, Edmonton.
“The designation allows livestock producers in prescribed regions who are facing feed shortages to defer a portion of their 2015 sale proceeds of breeding livestock for one year in order to help replenish that stock in the following year. Proceeds from deferred sales are then included as part of the producer’s income in the next tax year, when those proceeds may be at least partially offset by the cost of replacing their breeding animals.”
To help navigate the process, the Alberta Ag-Info Centre has a .pdf available entitled Understanding the Federal Livestock Tax Referral. “This .pdf contains an overview of the program as well as some frequently asked questions and answers,” says Dehod. “It also explains how the deferral is calculated and includes an example.”
Source : Agriculture and Forestry