December 29, 2014 - Ottawa, Ontario - Agriculture and Agri-Food Canada
Livestock producers in British Columbia, Alberta, Saskatchewan and Manitoba, who faced forage shortfalls due to extreme weather events over the past year, will be allowed to defer tax on their cattle sales for 2014. Agriculture Minister Gerry Ritz today released a list of designated regions where tax deferrals have been authorized for 2014.
The tax deferral allows eligible producers in designated areas to defer income tax on the sale of their breeding livestock for one year in order to help replenish that stock in the following year. Proceeds from deferred sales are then included as part of the producer's income in the next tax year, when those proceeds may be at least partially offset by the cost of replacing their breeding animals.
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. Eligible producers can request the tax deferral when filing their 2014 income tax returns.
Jeff English
Director of Communications
Office of the Honourable Gerry Ritz
Minister of Agriculture and Agri-Food
613-773-1059
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
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