21. Income-averaging deduction for forest producers (Line 297)
If, under the Sustainable Forest Development Act, you are a certified forest producer (or a member of a partnership that is a certified forest producer) regarding a private forest, you can request that a portion of the net income generated by non-retail sales of timber produced in the private forest be averaged over a period not exceeding seven or ten years, provided that the sales are made to a buyer with an establishment in Québec and that you were resident in Québec on December 31, 2020.
The amount deducted for the year must be included—in whole or in part—in calculating your taxable income for one or more of the next seven or ten years. See point 8 in the instructions for line 276.
Enclose the following with your tax return:
- a copy of a valid certificate issued to you and attesting that you are a certified forest producer regarding the private forest for which you are claiming the deduction or issued to the partnership of which you are member and attesting that this partnership is certified as such
- form TP-726.30-V, Income Averaging for Forest Producers