Use this form to calculate your federal tax payable under alternative minimum tax for 2023. If you are completing a return for a trust, use T3 Schedule 12, Minimum Tax.
Complete parts 1, 2, and 8 if you do not have to pay minimum tax in 2023 and you are applying a minimum tax carryover from previous years against your tax payable for 2023.
Alternative minimum tax does not apply to a person who died in 2023 or to returns filed under subsection 70(2) or 150(4), or under paragraph 104(23)(d) or 128(2)(e) of the Income Tax Act (the Act).
If you had business income in 2023 from a province or territory other than the one in which you lived at the end of the year, or from another country, you may also have to complete and attach a copy of Form T2203, Provincial and Territorial Taxes for 2023 - Multiple Jurisdictions.
Attach a completed copy of this form to your return.
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(1) |
If you are a member of a partnership, include your share of the income and deductions for the partnership's fisical period ending in 2023. Do not include any amounts that you have to include on lines 8 to 10 of this form. |
(2) |
To determine which carrying charges should be adjusted when calculating alternative minimum tax, see paragraphs 20(1)(c) to (f) of the Act. |
(3) |
For film property and rental and leasing property, first add income from these investments (before CCA or carrying charges, if they apply) and net taxable capital gains, if any, from dispositions of such investments. Then subtract losses from these investments (before CCA or carrying charges, if they apply). If the result is negative, enter "0". |
(4) |
If your interest in the partnership is in a tax shelter that the partnership holds, include on line 8 your share of the net losses of the partnership from each source (allowable capital losses, business losses, and property losses) that is more than the amount allowed under paragraph 127.52(1)(c.1) of the Act. Generally, the amount allowed under that paragraph should correspond with the net taxable capital gains that were attributed to you by the partnership or that you have realized on the disposition of your interest in the partnership. These losses are generally reported on line 12200 of your return, except rental (line 12600) and farming losses (line 14100). |
(5) |
Include all amounts deducted for property for which an identification number is required to be, or has been, obtained under section 237.1 of the Act, such as carrying charges for the acquisition of the property, other than amounts to which paragraphs 127.52(1)(b) to (c.2) apply. Include amounts from Form T5004, Claim For Tax Shelter Loss or Deduction, that you claimed as an income deduction or a loss on your return. |
(6) |
Enter on this line carrying charges for the acquisition of an interest in a partnership of which you were a limited or on-active parner, or in a parnership that owns a rental or leasing property or a film property. Include only carrying charges that are more than your share of the partnership's income. |
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(7) |
This amount includes amounts from lines 1, 2 and 3 of Column 8 of Form T1170 as well as gifts of property to a qualified donee not included on Form T1170 (for example, gifts of listed personal property or other capital property), but excludes amounts from lines 1, 2 and 3 of Column 7 of Form T1170 (gains on gifted property eligible for 0% inclusion rate) as these amounts are not included on line 21. |
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(8) |
You can no longer file an election. The deadline for filing an election to restrict your limited partnership losses for partnerships that are tax shelters was March 11, 2014. |
(9) |
Calculate the limited partnership losses and/or restricted farm losses, farm losses, and non-capital losses for other years from CCA and carrying charges, using the rules in effect for the year. If you need help, contact us. |
(10) |
If you elect under section 40 of the Income Tax Application Rules, include the elected income in the total on line 45. |
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(11) |
If you have unapplied capital losses from other years, complete Part 9 and enter the net non-deducted capital losses on line 49. This applies even if you have not claimed any net capital losses of other years on line 25300 of your return. However, if line 27 in Part 1 is "0" or negative, and you do not have any unapplied net capital losses from before May 23, 1985, do not complete Part 9. Enter "0" on line 49. |
(12) |
If you claimed a federal logging tax credit on your return, add this amount to the amount on line 60. |
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(13) |
Non-business income tax paid to a foreign country (see note below) |
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Total of non-business income or profits tax you paid to that country or to a political subdivision of that country for the year, minus any part of this tax that is deductible under subsection 20(11) or deducted under subsection 20(12) of the Canadian Income Tax Act. Non-business income tax paid to a foreign country does not include tax that can reasonably be attributed to an amount that: |
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any other person or partnership has received, or is entitled to receive from the foreign country |
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relates to taxable capital gains from that country, and you or your spouse or common-law partner claimed a capital gains deduction for that income |
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was deductible as income exempt from tax under a tax treaty between Canada and that country |
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was taxable in the foreign country because you were a citizen of that country, and relates to income from a source within Canada |
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Note Any amount of tax you paid to a foreign government in excess of the amount you had to pay according to a tax treaty is considered a voluntary contribution and does not qualify as foreign taxes paid. |
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Business income tax paid to a foreign country (see note 1 below) |
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Total of business income or profits tax you paid to a country or a political subdivision of a country for the year (see note 2 below). It does not include any part of the business income tax that can be reasonably attributed to an amount that any other person or partnership has received or is entitled to receive from a country, or that was payable on income that was exempt from tax under a tax treaty between Canada and that country. |
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Note 1 Any amount of tax you paid to a foreign government in excess of the amount you had to pay according to a tax treaty is considered a voluntary contribution and does not qualify as foreign taxes paid. |
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Note 2 If you were a resident of Quebec, multiply this amount by 55%. |
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(15) |
Use the amount on line 105 as your basic federal tax (instead of line 42900 of your return) when you calculate any refundable Quebec or Yukon First Nations abatement. If you have to pay provincial or territorial tax to multiple jurisdictions and have income allocated to Quebec, enter the amount from line 105 on line 11 in Part 2 of Form T2203 to calculate any refundable Quebec abatement. |
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(16) |
Non-business income tax paid to a foreign country (see note below) |
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Total of non-business income or profits tax you paid to that country or to a political subdivision of that country for the year, minus any part of this tax that is deductible under subsection 20(11) or deducted under subsection 20(12) of the Canadian Income Tax Act. Non-business income tax paid to a foreign country does not include tax that can reasonably be attributed to an amount that: |
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any other person or partnership has received, or is entitled to receive from the foreign country |
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relates to taxable capital gains from that country, and you or your spouse or common-law partner claimed a capital gains deduction for that income |
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was deductible as income exempt from tax under a tax treaty between Canada and that country |
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was taxable in the foreign country because you were a citizen of that country, and relates to income from a source within Canada |
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Note Any amount of tax you paid to a foreign government in excess of the amount you had to pay according to a tax treaty is considered a voluntary contribution and does not qualify as foreign taxes paid. |
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Business income tax paid to a foreign country (see note 1 below) |
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Total of business income or profits tax you paid to a country or a political subdivision of a country for the year (see note 2 below). It does not include any part of the business income tax that can be reasonably attributed to an amount that any other person or partnership has received or is entitled to receive from a country, or that was payable on income that was exempt from tax under a tax treaty between Canada and that country. |
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Note 1 Any amount of tax you paid to a foreign government in excess of the amount you had to pay according to a tax treaty is considered a voluntary contribution and does not qualify as foreign taxes paid. |
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Note 2 If you were a resident of Quebec, multiply this amount by 55%. |
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(18) |
Do not include the part of the capital gains deduction for the disposition of eligible capital property that is qualified farm property or qualified fishing property. |
| (19) |
If you are completing this form for a prior year, include on this line any losses you are carrying back from a future year. |
| (20) |
Do not include the non-deducted part of capital losses from mortgage foreclosures and conditional sales repossessions. For post-1994 net capital losses, Note 3 on page 1 also applies here. |
| (21) |
You can find this information on your notice of assessment or reassessment for 2000, or by contacting us. |
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