“Significant forage shortages” in 48 regions of BC have prompted the federal government to let livestock producers defer taxes on proceeds from the sale of breeding livestock in the 2019 tax year.
“Preliminary analysis indicates that livestock producers in Western Canada and Quebec are experiencing significant forage shortages due to drought conditions, supporting an early designation under the livestock tax deferral provision,” the federal announcement made July 21 said. In a nod to recent flooding in the Chilcotin, it noted that “excess moisture regions” are also considered eligible.
The regions in BC form a band across the north-central part of the province from Fort St. John to Haida Gwaii. Central and southern Vancouver Island are also included. (The full list and a map are available here: http://bit.do/2019-tax-deferral-map).
Designated regions are expected to harvest less than half their forage crop. The deferral provision allows them to defer income until the following tax year, when the cost of replacing animals sold the previous year can be claimed against sale proceeds.
The deferral provision was also available to producers in many of this year’s designated regions last year. In a few cases, this will be the fifth straight year in which forage levels have been 50% of normal and Ottawa has deemed them eligible to defer tax on the proceeds of livestock sales.