The federal government released an initial list of designated regions in BC, Alberta, Saskatchewan, Manitoba, and Quebec where livestock tax deferral has been authorized for 2019 due to extreme weather conditions.
Preliminary analysis shows that livestock producers in Western Canada and Quebec are experiencing forage shortages due to drought conditions.
The livestock tax deferral provision allows producers in drought, flood, or excess moisture conditions to defer a portion of their 2019 sale proceeds of breeding livestock until 2020 to help replenish the herd. The cost of replacing animals in 2020 will offset the deferred income, reducing the tax burden of the original sale.
Regions that meet the criteria for the tax deferral have forage shortfalls of 50 percent or more. Eligible regions are identified based on weather and climate data.
Eligibility for the tax deferral is limited to producers located in the designated areas. Producers in those regions can request the tax deferral when filing their 2019 income tax returns.
Full a full list of designated regions in Manitoba click here.