Ottawa has announced additional regions where livestock producers are eligible for tax deferrals. This allows producers who faced feed shortages to defer a portion of their 2015 sale proceeds of breeding livestock until the following year.
The cost of replacing the animals in the next year offsets the deferred income, which reduces the producer’s taxes. The tax deferral needs to be claimed on your 2015 income tax return.
The drought last spring and summer affected more than 27,000 farms and 5.8 million head of cattle, forcing some producers to sell off breeding animals.
For the full list of designated regions, go to agr.gc.ca and search for ‘2015 livestock tax deferral.’
