The final list of designated regions for 2016 under the Livestock Tax Deferral Provision has been authorized because of drought conditions in British Columbia, Alberta, Ontario, Quebec and Nova Scotia.
The provision allows producers in designated drought regions who are facing feed shortages to defer a portion of their sale proceeds of breeding livestock to the next year.
The cost of replacing the animals in the next year offsets the deferred income, thereby reducing the tax burden associated with the original sale.
Eligible producers can request the tax deferral when filing their 2016 income tax returns, or if they have already filed, submit an adjustment request directly to the Canada Revenue Agency.
The impacts of the current wild fires in British Columbia on agricultural operations are also being studied by federal and provincial officials for possible assistance, including the potential of a livestock tax deferral for 2017.