My client is subject to alternative minimum tax (AMT) and he purchased shares from the labour-sponsored funds tax credit in the year. Does he lose that credit?When AMT applies, the LSFTC cannot be used in the year nor can it be carried to the next year as a minimum tax carryforward. In Quebec however, since the unused amount of LSFTC can be carried forward to a subsequent year, the taxpayer may choose not to claim the credit in the year in which the AMT applies.DT Max does not do this automatically. If you wish to carry the amount to next year, do not enter the purchase of shares in the client's file for the current year. Instead, enter it for next year. October 26, 1999 |
