If you were impacted by extreme drought or moisture in 2014, there may be some good news coming your way, as the Government of Canada has finalized a list of regions eligible for tax deferral for 2014.
The changes mean that eligible producers will be able to defer a portion of their income from sales of breeding livestock for one year. Should you want to return to the game in the following year, these proceeds could then be offset by the cost of replacements.
In order to be eligible for the tax deferral, your breeding herd must have been reduced by at least 15%. A 15%-30% reduction in the breeding herd size will allow producers to defer 30% of their income from net sales. Any herd reduction beyond 30% will be eligible for a deferral of 90% of the income from net sales.
If you’re eligible and interested, request a tax deferral when filing your 2014 income tax returns. If you’ve already submitted your returns, submit an adjustment request to the Canada Revenue Agency.