412 Net taxable capital gains giving entitlement to a deduction
If the trust is a personal trust that is designating all or part of the capital gains allocated to beneficiaries as taxable capital gains, it must also enter on line 412 the amount of designated gains that qualifies for a deduction. The eligible gains are those realized on qualified property (qualified farm or fishing property or QSBCSs).
Complete form TP-668.1-V, Taxable Capital Gains of a Trust That Give Entitlement to a Deduction (this form can also be used to calculate the CNIL). Then enter, in column 4 on line 412 of Schedule C, the lesser of the following amounts:
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the total amount of the designated net taxable capital gains (column 4 on line 400 of Schedule C);
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the amount of the taxable capital gains that give entitlement to a deduction (line 46 of form TP-668.1-V).
For each beneficiary to whom the gains are being designated, multiply by 2 the beneficiary's share of the amount in column 4 on line 412. Enter the result in box H of the beneficiary's RL-16 slip. This is the actual amount (100%) of the capital gain qualifying for a deduction.
Taxable capital gains on qualified property
The amount of the taxable capital gains realized on qualified farm or fishing property that give entitlement to a deduction corresponds to the lesser of the following amounts:
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the total amount of the taxable capital gains on qualified farm or fishing property;
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the amount in column 4 on line 412 of Schedule C.
The amount of the taxable capital gains realized on QSBCSs that give entitlement to a deduction corresponds to the lesser of the following amounts:
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the total amount of the taxable capital gains on QSBCSs;
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the amount in column 4 on line 412 of Schedule C, minus the amount of the capital gains on qualified farm or fishing property that give entitlement to a deduction (refer to the previous paragraph).
Enter the amount related to qualified farm or fishing property in column 4 on line 430 and the amount related to QSBCSs in column 4 on line 431 of Schedule C.
668.1, 668.2
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