Federal Agriculture Minister Gerry Ritz has announced that livestock producers in Alberta will be eligible for tax deferrals on livestock sold due to drought in 2008.
Producers from Birch Hills County and Municipal Districts of Fairview and Spirit River, in addition to the Counties of Grande Prairie No. 1, Saddle Hills and Clear Hills, who were forced to sell all or part of their herd due to drought conditions, will be eligible for a one-year tax deferral on 2008 income from these sales.
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.
The 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.
Eligible producers will be able to request this deferral when filing their 2008 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.