Livestock Producers Receive Tax Relief For 2016

Livestock Producers Receive Tax Relief For 2016

on April 22 | in Ag News | by | with No Comments

From a news release

The Government of Canada has released a list of additional designated regions in British Columbia, Alberta, Ontario, Quebec and Nova Scotia where livestock tax deferral has been authorized for 2016 due to drought conditions.

In November 2016, Ottawa announced the initial list of designated regions in Alberta, Ontario and Quebec for livestock tax deferral purposes.

Ongoing analysis has indicated the need for a final list of designated regions for 2016. That final list will be provided as soon as authorization has been received.

Click here to view the current lists.

The livestock tax deferral provision allows producers in designated drought regions who are facing feed shortages, to defer a portion of their 2016 sale proceeds of breeding livestock to the next year.

The cost of replacing the animals in the next year offsets the deferred income, thereby reducing the tax burden associated with the original sale. Producers in those designated regions can request the livestock tax deferral provision be applied when filing their 2016 income tax returns.

Low moisture levels resulted in significant forage shortages for livestock producers in British Columbia, Alberta, Ontario, Quebec and Nova Scotia. One option for producers is to reduce their breeding herd in order to manage feed supplies.

In addition to the livestock tax deferral provision, producers have access to assistance through existing Growing Forward 2 Business Risk Management programs, which include AgriInsurance, AgriStability and AgriInvest.

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