Drought and excessive moisture for farmers
Eligible farmers who dispose of breeding livestock in a tax year because of flood or excessive moisture are allowed to exclude a portion of the sale proceeds from their incomes until the following tax year. The current rule is extended to bees and to all types of horses that are over 12 months of age that are kept for breeding.
This measure applies to 2014 and later tax years.
Livestock tax deferral provision
Under the Livestock Tax Deferral Provision, owners of breeding livestock in designated areas who are forced to sell all or part of their breeding herd due to drought or excess moisture and flood conditions, are eligible for a one-year tax deferral on part of the income from those sales. This helps eligible producers replenish breeding stock in the following year.
In the case of consecutive years of drought or excess moisture and flood designation, producers may defer sales income to the first year in which the area is no longer designated. Eligible producers will be able to request this deferral when filing their income tax returns.
Report a problem or mistake on this page
- Date modified: