The federal government is offering tax deferrals to livestock producers in Manitoba who have been struggling under excessive moisture conditions in northern Manitoba, and the Interlake, Westlake areas. The tax deferral will allow eligible producers 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%, in which case 30% of income from net sales can then be deferred. In cases where the herd has been reduced by more than 30%, 90%  of income from net sales can be deferred.