LIVESTOCK SALE TAX DEFERRAL WILL ASSIST MANY YORKTON-MELVILLE PRODUCERS

OTTAWA – Unprecedented moisture in 2010 has prompted the federal and provincial governments to offer tax deferrals to a number of rural municipalities, many in the federal constituency of Yorkton-Melville.

 Garry Breitkreuz, Member of Parliament for Yorkton-Melville, said the announcement comes following much communication with those livestock producers affected by this year’s flooding.

“I have travelled throughout the riding and talked to many producers,” said Breitkreuz.  “The conditions this year are horrendous.  Many livestock producers are facing the prospect of not having enough feed or good quality feed and straw to keep their animals through the winter.  The tax deferral on the sale of breeding livestock will serve as an option for many.”

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. In the case of consecutive years of designation, producers may defer sales income to the first year in which the area is no longer designated.

To defer income, the breeding herd must have been reduced by at least 15 percent. If this is the case, 30 percent of income from net sales can then be deferred. In cases where the herd has been reduced by more than 30 percent, 90 percent of income from net sales can be deferred.

Eligible producers will be able to request this deferral when filing their 2010 income tax returns. Livestock producers are advised to contact their local Canada Revenue Agency Tax Services Office for details on the income tax provisions.

This preliminary designation has been established based on soil moisture and summer rainfall, supplemented with estimates of forage yield and feed availability. Final decisions and any needed adjustments will be made when all the impacts of the excess moisture are known and when forage yield information becomes available. Assessment of the excess moisture situation will continue throughout the fall and, as more data about forage yields are known, tax deferral areas could be expanded.

“In all, 32 rural municipalities in Yorkton-Melville have been designated as regions where producers will qualify for the 2010 livestock tax deferral,” said Breitkreuz.  “Many of the livestock producers I talked to have the opportunity to minimize their feed issues by selling their cattle this fall without facing heavy income tax burdens.

“I’m aware that this won’t be a solution for everyone, but I believe this is another step in assisting our livestock producers.”

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For more information contact:
Glenda Eimantas
Parliamentary Assistant
Breitg0@parl.gc.ca
613-992-4394

Yorkton-Melville Rural Municipalities designated as 2010 Livestock Tax Deferral Prescribed Regions

RM 211 Churchbridge

RM 213 Saltcoats

RM 214 Cana

RM 215 Stanley

RM 216 Tullymet

RM 241 Calder

RM 243 Wallace

RM 244 Orkney

RM 245 Garry

RM 246 Ituna Bon Accord

RM 247 Kellross

RM 271 Cote

RM 273 Sliding Hills

RM 274 Good Lake

RM 275 Insinger

RM 276 Foam Lake

RM 301 St. Philips

RM 303 Keys

RM 304 Buchanan

RM 305 Invermay

RM 331 Livingston

RM 333 Clayton

RM 334 Preeceville

RM 335 Hazel Dell

RM 336 Sasman

RM 337 Lakeview

RM 366 Kelvington

RM 367 Ponass Lake

RM 394 Hudson Bay

RM 395 Porcupine

RM 397 Barrier Valley

RM 426 Bjorkdale