How do you pick up the livestock tax deferral on a T2? Is there a specific spot to enter the deferral, or should it just be entered as an other deduction on the S1?
Are you refering to the Optional and Mandatory Livestock provisions?
We never come across that in Ontario, thankfully.
I believe this should be done on the financial statements, and noted, then the deferral is picked up the following year accordingly. Therefore, it would be shown as a deduction on the Sch1.
As the livestock tax deferral isn’t a true deferral, it shouldn’t impact their current ratio on their financial statements. They’ve already collected the cash and essentially is just a tax reserve.
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