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South West Alberta livestock producers in line for 2016 tax relief

Nov 22, 2016 | 1:17 PM

OTTAWA  –   Alberta is one of three provinces with regions designated for the 2016 Livestock Tax Deferral Provision

On Tuesday (Nov 22), Agriculture minister Lawrence MacAulay released a list of designated regions in Alberta, Ontario and Quebec where livestock tax deferrals have been authorized for 2016 due to drought.

Most of the Alberta regions are in the south-west and central area of the province.  A partial list includes the following south-west regions:

— Lethbridge County
— Mountain View County
— Municipality of Crowsnest Pass
— Municipal District of Foothills No. 31
— Municipal District of Pincher Creek No. 9
— Municipal District of Willow Creek No. 26
— Vulcan County
— Wheatland County

Under the stipulations of the  livestock tax deferral provisions eligibility is limited to producers located within the areas designated as drought regions.

The program allows livestock producers in the designated drought regions to defer a portion of their 2016 sale proceeds of breeding livestock until the next year to help replenish the herd. The cost of replacing the animals in the next year offsets the deferred income, which ultimately reduces the tax burden associated with the original sale.

Producers can request the tax deferral when filing their 2016 income tax returns.

More information on the 2016 Livestock Tax Deferral Provisions and Drought Watch can be found on the government website.