130 Additional income tax resulting from the AMT
Complete form TP-776.42. F-V, Alternative Minimum Tax of a Trust, if the provisions respecting this tax apply to the trust.
A trust may be required to pay the AMT if it includes any of the following in its return:
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taxable dividends;
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taxable capital gains;
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a loss created or increased by resource deductions (other than the additional deductions for Québec resources) or by the depletion allowance for resource property;
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its share of a loss sustained by a partnership, where its interest in the partnership is a tax shelter;
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a loss created or increased by a capital cost allowance deduction or any deduction for carrying charges and interest expenses, with regard to rental property (including certain films);
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a loss or a deduction pertaining to a tax shelter;
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carrying charges deducted with respect to the purchase of an interest in a partnership of which the trust is a specified member;
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carrying charges deducted with respect to the purchase of an interest in a partnership that owns a film or rental property, where the carrying charges create or increase a loss attributable to such sources.
Exceptions
A trust is not subject to the AMT for a taxation year if, throughout that taxation year, it is a mutual fund trust, an insurance segregated fund trust, a master trust (a trust of which each beneficiary is a trust governed by an RPP, a PRPP, a VRSP or a DPSP) or an employee life and health trust.
A spousal trust created after 1971, a joint spousal trust or an alter-ego trust are also not subject to alternative minimum tax for the year in which the person concerned (the beneficiary spouse, surviving spouse or deceased individual, as applicable) dies.
As of 2016, only a GRE can take advantage of the basic $40,000 exemption in calculating the AMT. This means that other testamentary trusts no longer benefit from this exemption.
776.42-776.46, 776.50-776.65
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