The Government of Canada is offering 2008 tax deferrals to producers who have been dealing with drought in designated areas of northern British Columbia.
Federal Agriculture Minister Gerry Ritz announced Friday that producers who resorted to selling off cattle to avoid financial losses due to drought conditions will be eligible for a one-year tax deferral on 2008 income from those sales.
The deferral was made after reviewing forage yield, precipitation, soil moisture and water supply data for the 2008 growing season, and provides a management option to breeding livestock owners. Owners of breeding livestock in British Columbia’s Peace River Regional District who were forced to sell all or part of their herd in 2008 due to drought conditions are eligible for the deferral.
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 2008 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax