Agriculture Minister Gerry Ritz has announced an expanded list of designated areas where livestock producers are eligible for tax deferrals because of the effect of dry conditions on forage yields.
The deferral allows producers to defer income tax on the sale of breeding livestock for one year to help replenish breeding stock in the following year. Proceeds from deferred sales are included as income in the next tax year, when they may be at least partially offset by the cost of replacing breeding animals. In the case of consecutive years of designation, producers may defer sales income to the first year in which the area is no longer designated.
To defer income, the breeding herd must have been reduced by at least 15 per cent. If this is the case, 30 per cent of income from net sales can then be deferred. In cases where the herd has been reduced by more than 30 per cent, 90 per cent of income from net sales can be deferred.
Eligible producers will be able to request this deferral when filing their 2012 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details.
The deferral applies in designated areas in British Columbia, Alberta, Manitoba, Ontario and Quebec.
In Alberta, additional counties are Birch Hills County, Clear Hills County, Municipal District of Fairview No. 136, Grande Prairie County No. 1, Mackenzie County, Municipal District of Peace No. 135, Municipal District of Spirit River No. 133, Northern Lights County and Saddle Hills County. In B.C. Peace River Regional District is also designated.