Livestock tax deferral designated regions released

Highlighted regions selected to utilize the 2019 livestock tax deferral. In the east central Alberta area, the County of Paintearth, Special Areas No. 2, 3 and 4., the M.D. of Provost, Wainwright County and Wheatland County have been recognized. ECA Review/Government of Canada
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Highlighted regions selected to utilize the 2019 livestock tax deferral. In the east central Alberta area, the County of Paintearth, Special Areas No. 2, 3 and 4., the M.D. of Provost, Wainwright County and Wheatland County have been recognized. ECA Review/Government of Canada

The Government of Canada released an initial list of designated regions in British Columbia, Alberta, Saskatchewan, Manitoba and Quebec where livestock tax deferral has been authorized for 2019 due to extreme weather conditions on Mon. July 22.;

Five rural municipalities including the County of Paintearth, Special Areas No. 2, No. 3. and No. 4., the M.D. of Provost, Wainwright County and Wheatland County have been recognized as areas eligible of receiving a livestock tax deferral after preliminary analysis.

The southern half of Saskatchewan and Manitoba along with northern B.C. and a sliver of Quebec were also hit with drought conditions last year.

Significant forage shortages were also common due to these drought conditions, supporting an early designation under the livestock tax deferral provision.

Ongoing analysis and consultations will continue to determine if additional regions will be added to the designated list.

The livestock tax deferral provision allows livestock producers in prescribed drought, flood or excess moisture regions to defer a portion of their 2019 sale proceeds of breeding livestock until 2020 to help replenish the herd.

The cost of replacing the animals in 2020 will offset the deferred income, thereby reducing the tax burden associated with the original sale.

The criteria for identifying regions for livestock tax deferral is forage shortfalls of 50 per cent or more caused by drought or excess moisture.

Eligible regions are identified based on weather, climate and production data, in consultation with industry and provinces.

Producers in the regions recognized can request the tax deferral when filing their 2019 income tax returns.

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

 

Terri Huxley

ECA Review

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