The Government of Canada announced Jan. 11 that more Alberta livestock producers affected by drought will be eligible for a federal tax deferral.
“The Government of Canada continues to deliver real results for farmers and ranchers by offering tax deferrals to the producers whose operations are suffering due to the hot, dry season,” said Agriculture Minister Gerry Ritz.
The tax deferral allows eligible producers in designated areas to defer income tax on the sale of breeding livestock for one year to help replenish breeding stock in the following year. In the case of consecutive years of drought designation, producers may defer sales income to the first year in which the area is no longer designated.
Producers who reduced their breeding herds by at least 15 per cent are eligible. Thirty per cent of income from net sales can be deferred if the herd has been reduced by at least 15 per cent, but less than 30 per cent. Where the herd has been reduced by 30 per cent or more, 90 per cent of income from net sales can be deferred. ns.