Income Tax Act

Marginal note:Definitions

• 80.3 (1) In this section,

  breeding animals

  breeding animals means deer, elk and other similar grazing ungulates, bovine cattle, bison, goats, sheep and horses that are over 12 months of age and are kept for breeding; (animaux reproducteurs)

  breeding bees

  breeding bees means bees that are not used principally to pollinate plants in greenhouses and larvae of those bees; (abeilles reproductrices)

  breeding bee stock

  breeding bee stock, of a taxpayer at any time, means a reasonable estimate of the quantity of a taxpayer’s breeding bees held at that time in the course of carrying on a farming business using a unit of measurement that is accepted as an industry standard; (stock d’abeilles reproductrices)

  breeding herd

  breeding herd of a taxpayer at any time means the number determined by the formula

  A - (B - C)

  where

  A

  is the total number of the taxpayer’s breeding animals held in the course of carrying on a farming business at that time,

  B

  is the total number of the taxpayer’s breeding animals held in the business at that time that are female bovine cattle that have not given birth to calves, and

  C

  is the lesser of the number determined as the value of B and one-half the total number of the taxpayer’s breeding animals held in the business at that time that are female bovine cattle that have given birth to calves. (troupeau reproducteur)

• Marginal note:Income deferral from the destruction of livestock

  (2) Where a particular amount in respect of the forced destruction of livestock under statutory authority in a taxation year of a taxpayer is included in computing the income of the taxpayer for the year from a farming business, there may be deducted in computing that income such amount as the taxpayer claims not exceeding the particular amount.

• Marginal note:Inclusion of deferred amount

  (3) The amount deducted under subsection (2) in computing the income of a taxpayer from a farming business for a taxation year shall be deemed to be income of the taxpayer from the business for the taxpayer’s immediately following taxation year.

• Marginal note:Income deferral for regions of drought, flood or excessive moisture

  (4) If in a taxation year a taxpayer carries on a farming business in a region that is at any time in the year a prescribed drought region or a prescribed region of flood or excessive moisture and the taxpayer’s breeding herd at the end of the year in respect of the business does not exceed 85% of the taxpayer’s breeding herd at the beginning of the year in respect of the business, there may be deducted in computing the taxpayer’s income from the business for the year the amount that the taxpayer claims, not exceeding the amount, if any, determined by the formula

  (A - B) × C

  where

  A

  is the amount by which

  • (a) the total of all amounts included in computing the taxpayer’s income for the year from the business in respect of the sale of breeding animals in the year

  exceeds

  • (b) the total of all amounts deducted under paragraph 20(1)(n) in computing the taxpayer’s income from the business for the year in respect of an amount referred to in paragraph (a) of this description;

  B

  is the total of all amounts deducted in computing the taxpayer’s income from the business for the year in respect of the acquisition of breeding animals; and

  C

  is

  • (a) 30% where the taxpayer’s breeding herd at the end of the year in respect of the business exceeds 70% of the taxpayer’s breeding herd at the beginning of the year in respect of the business, and

  • (b) 90% where the taxpayer’s breeding herd at the end of the year in respect of the business does not exceed 70% of the taxpayer’s breeding herd at the beginning of the year in respect of the business.

• Marginal note:Income deferral

  (4.1) If in a taxation year a taxpayer carries on a farming business in a region that is at any time in the year a prescribed drought region or a prescribed region of flood or excessive moisture and the taxpayer’s breeding bee stock at the end of the year in respect of the business does not exceed 85% of the taxpayer’s breeding bee stock at the beginning of the year in respect of the business, there may be deducted in computing the taxpayer’s income from the business for the year the amount that the taxpayer claims, not exceeding the amount, if any, determined by the formula

  (A – B) × C

  where

  A

  is the amount by which

  • (a) the total of all amounts included in computing the taxpayer’s income from the business for the year in respect of the sale of breeding bees in the year

  exceeds

  • (b) the total of all amounts deducted under paragraph 20(1)(n) in computing the taxpayer’s income from the business for the year in respect of an amount referred to in paragraph (a);

  B

  is the total of all amounts deducted in computing the taxpayer’s income from the business for the year in respect of the acquisition of breeding bees; and

  C

  is

  • (a) 30% if the taxpayer’s breeding bee stock in respect of the business at the end of the year exceeds 70% of the taxpayer’s breeding bee stock in respect of the business at the beginning of the year, and

  • (b) 90% if the taxpayer’s breeding bee stock in respect of the business at the end of the year does not exceed 70% of the taxpayer’s breeding bee stock in respect of the business at the beginning of the year.

• Marginal note:Inclusion of deferred amount

  (5) An amount deducted under subsection (4) or (4.1) in computing the income of a taxpayer for a particular taxation year from a farming business carried on in a region prescribed under those subsections may, to the extent that the taxpayer so elects, be included in computing the taxpayer’s income from the business for a taxation year ending after the particular taxation year, and is, except to the extent that the amount has been included under this subsection in computing the taxpayer’s income from the business for a preceding taxation year after the particular year, deemed to be income of the taxpayer from the business for the taxation year of the taxpayer that is the earliest of

  • (a) the first taxation year beginning after the end of the period or series of continuous periods, as the case may be, for which the region is prescribed under those subsections,

  • (b) the first taxation year, following the particular taxation year, at the end of which the taxpayer is

    • (i) non-resident, and

    • (ii) not carrying on business through a fixed place of business in Canada, and

  • (c) the taxation year in which the taxpayer dies.

• Marginal note:Subsections (2), (4) and (4.1) not applicable

  (6) Subsections (2), (4) and (4.1) do not apply to a taxpayer in respect of a farming business for a taxation year

  • (a) in which the taxpayer died; or

  • (b) where at the end of the year the taxpayer is non-resident and not carrying on the business through a fixed place of business in Canada.

• Marginal note:Measuring breeding bee stock

  (7) In applying subsection (4.1) in respect of a taxation year, the unit of measurement used for estimating the quantity of a taxpayer’s breeding bee stock held in the course of carrying on a farming business at the end of the year is to be the same as that used for the beginning of the year.