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 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, 2019.
Income averaging allows you to deduct, in calculating your taxable income for the year, a portion of the net income generated by the non-retail sale (to a buyer with an establishment in Québec) of timber produced in a private forest. 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 years. The total amount deducted must be included in your taxable income no later than the seventh year following the year in which you request income averaging. To calculate the amount you can deduct, complete form TP-726.30-V, Income Averaging for Forest Producers.
Enclose the following supporting documents 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