Tax relief for prairie livestock producers impacted by extreme weather
MELFORT, SK – Livestock producers who have been impacted by severe weather have been forced to make some tough decisions about reducing the size of their herd.
The federal government has released an initial list of designated regions in Alberta, Saskatchewan, and Manitoba where producers are eligible for the Livestock Tax Deferral.
The provision allows livestock producers who are forced to sell a significant amount of their breeding herd due to drought or flooding to defer a portion of their income from sales until the following tax year. To defer income the breeding herd must have been reduced by at least 15 per cent.
The income may be at least partially offset by the cost of reacquiring breeding animals, reducing the potential tax burden associated with the original sale.
