If you’re a farmer in Athabasca County affected by drought, excess moisture or flooding, and you sell part or all of your breeding herd because of it, you may be able to defer paying tax on some of that income to the next year.
How the provision works
To defer income, the breeding herd must have been reduced by at least 15%.
• Where the breeding herd has been reduced by at least 15%, but less than 30%, 30% of income from net sales can be deferred.
• Where the breeding herd has been reduced by 30% or more, 90% of income from net sales can be deferred.
In a year when a region is officially declared as affected, income from the sale of breeding livestock can be delayed to the next tax year when the income inclusion may be at least partially offset by the cost of reacquiring the breeding livestock. In the case of consecutive years of drought, excess moisture or flooding, farmers may defer this income to the first year in which the region is no longer declared affected.
Click on this link for more information: https://agriculture.canada.ca/…/livestock-tax-deferral…
List of prescribed regions: https://agriculture.canada.ca/…/2025-livestock-tax…
