Tax deferrals for more livestock producers

by Editor fleischwirtschaft.com
Thursday, December 06, 2012

More livestock producers in British Columbia, Alberta, Manitoba, Ontario and Quebec will have financial breathing room to help them cope with the effects of extremely dry growing conditions on forage yields. Agriculture Minister Gerry Ritz announced that the list of designated areas eligible for tax deferrals has been expanded.

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. 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%. If this is the case, 30% of income from net sales can then be deferred. In cases where the herd has been reduced by more than 30%, 90% of income from net sales can be deferred.
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