Greenview has been added to the list of prescribed regions eligible for the Livestock Tax Deferral Provision.
The Livestock Tax Deferral Provision allows farmers who sell part of their breeding herd due to drought or flooding in prescribed drought or flood regions to defer a portion of sale proceeds to the following year.
How the provision works
To defer income, the breeding herd must have been reduced by at least 15%.
- Where the breeding herd has been reduced by at least 15%, but less than 30%, 30% of income from net sales can be deferred.
- Where the breeding herd has been reduced by 30% or more, 90% of income from net sales can be deferred.
In a year in which a region has been prescribed, income from livestock sales is deferred to the next tax year when the income may be at least partially offset by the cost of reacquiring breeding animals, thus reducing the potential tax burden. In the case of consecutive years of drought or excess moisture and flood conditions, producers may defer sales income to the first year in which the region is no longer prescribed.
For more information, please visit: Government of Canada Livestock Tax Deferral Provision