TP-776.42-V: Alternative Minimum Tax

What’s in this article?

 

What is this?

Form TP-776.42-V is used to calculate the alternative minimum tax (AMT) for the year. The AMT is a separate way of calculating tax where the minimum tax exceeds the amount of tax payable under the regular tax calculation.

Revenu Québec says…

You may be required to pay this tax if any of the following situations apply to you:

  1. You are reporting, on line 139, a taxable capital gain for which you are claiming a capital gains deduction on line 292.
  2. You are deducting a loss with respect to a tax shelter on line 164.
  3. You are claiming a deduction for interest and carrying charges incurred to acquire
    • flow-through shares; 
    • an interest in a partnership as a specified member;
    • a tax shelter; 
    • rental or leasing property; 
    • an investment in a film production; or
    • investments in resources. 
  4. You are claiming a deduction on line 241, a deduction for Québec exploration expenses that give entitlement to an additional deduction(line 250, point 9) or a deduction for certain films (line 250, point 17).
  5. You are claiming a deduction on line 287 unless the amount you are claiming on that line is
    • the additional deduction for Québec resources; or
    • the deduction for the Cooperative Investment Plan (CIP) and the cost of the securities for which you are claiming the deduction equals or exceeds the amount of the deduction.

Note: If you paid minimum tax on any of the preceding seven years and are not subject to AMT in the current year, you may be able to claim credits against your taxes for the current year for all or part of the minimum tax paid previously. To do so, you must complete the applicable parts of form TP-776.42-V.

To calculate your federal tax payable under the AMT, complete form T691: Alternative Minimum Tax.

 

Am I eligible?

If you claimed any of the following amounts or credits on your income tax return, you may be subject to Alternative Minimum Tax (AMT). Complete form TP-776.42-V if you are subject to AMT or if want to claim a deduction for AMT paid in the preceding seven years.

  • A taxable capital gain for which you are claiming a capital gains deduction;
  • A loss with respect to a tax shelter;
  • A deduction for interest and carrying charges incurred to acquire flow-through shares, an interest in a partnership as a specified member, a tax shelter, rental or leasing property, an investment in a film production; or investments in resources;
  • deduction for exploration and development expenses; and
  • Deduction for Stock Savings Plan II (SSP II)

Note: If you are a trust, do not use this form. Instead, use TP-776.47-V: Alternative Minimum Tax of a Trust of the T3 package to calculate the AMT.

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

Important: Before you begin, ensure that you told us that you lived in QUÉBEC on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:

  1. Click the HOME tab.
  2. Click the ABOUT YOU icon, and click the Your residence link. You will find yourself here:

Once you have confirmed your residence location, complete form TP-776.42-V by following these steps:

  1. Click the PREPARE tab.
  2. Click the OTHER icon. You will find yourself here:
  3. Under the MISCELLANEOUS section, select the checkbox labelled Alternative minimum tax (TP-776.42-V).
  4. Scroll to the bottom of the page and click Continue.

When you arrive at the page for the Alternative minimum tax (TP-776.42-V), enter your information in the software

 

Where can I learn more?