The federal government has added nine more moisture-stressed municipalities in western Manitoba and one in central Saskatchewan to the list of RMs eligible for tax deferrals from the sale of livestock.
The Manitoba additions include the municipalities of Albert , Arther, Brenda, Cameron, Edward, Pipestone, Sifton, Winchester and Kelsey.
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. Proceeds from deferred sales are included as income in the next tax year, when they may be at least partially offset by the cost of reacquiring breeding animals.
To defer income, the breeding herd must have been reduced by at least 15 per cent. If this is the case, 30 per cent of income from net sales can then be deferred. In cases where the herd has been reduced by more than 30 per cent, 90 per cent of income from net sales can be deferred.
Livestock producers are advised to contact the Canada Revenue Agency at http://www.cra-arc.gc.ca/cntct/phn-eng.html for details.