Tax Deferral for Selling Breeding Stock

On July 22, 2009, Agriculture Canada announced that livestock producers in Alberta in drought affected areas will be eligible for tax deferrals on breeding livestock sold due to drought in 2009. The tax deferral allows eligible producers in designated areas to defer income tax on the sale of breeding livestock for one year to help replenish breeding stock in the following year. In the case of consecutive years of drought designation, producers may defer sales income to the first year in which the area is no longer designated.

Producers who reduced their breeding herds by at least 15 per cent are eligible. Thirty per cent of income from net sales can be deferred if the herd has been reduced by at least 15 per cent, but less than 30 per cent. Where the herd has been reduced by 30 per cent or more, 90 per cent of income from net sales can be deferred.

Eligible producers will be able to request this deferral when filing their 2009 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.

While forage yield information is not available until later in the year, designations can be made earlier in the year based primarily on spring moisture conditions and estimates of forage yield. Early designation of eligible areas will allow producers to make informed decisions about fall and winter livestock management decisions.

As the growing season continues, further areas can be designated for the tax deferral should they meet the established criteria.

Alberta Tax Deferral Designated Areas:

• Beaver County
• Camrose County No. 22
• County of Minburn No. 27
• County of Paintearth No. 18
• County of Stettler No. 6
• County of Two Hills No. 21
• County of Vermilion River No. 24
• County of Wetaskiwin No. 10
• Flagstaff County
• Improvement District No. 13
• Kneehill County
• Lacombe County
• Leduc County
• Lamont County
• Municipal District of Acadia No. 34
• Municipal District of Provost No. 52
• Municipal District of Wainwright No. 61
• Parkland County
• Ponoka County
• Red Deer County
• Special Area No. 2
• Special Area No. 3
• Special Area No. 4
• Starland County
• Strathcona County
• Sturgeon County

Contact::
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-759-7972
1-866-345-7972

“The source of the materials is http://www.agriculture.alberta.ca. The use of these materials by Northernhorse.com is done without any affiliation with or endorsement by the Government of Alberta. Reliance upon Northernhorse.com’s use of these materials is at the risk of the end user.”

Be Sociable, Share!

•