T1237: Saskatchewan Farm and Small Business Capital Gains Tax Credit

What’s in this article?

 

What is this?

Form T1237 is used to calculate the Saskatchewan farm and small business capital gains tax credit. The purpose of this credit is to apply the lowest tax rate to eligible taxable capital gains in excess of the capital gains deduction amount.

When applied, the credit removes the eligible capital gains from an individual’s income and recalculates the provincial income tax payable with the capital gains taxed at the lowest provincial tax rate. The eligible capital gains must be from the disposition of qualified farm property or qualified small business corporation shares. The credit does not apply to other types of capital gains. 

 

Am I eligible?

You are eligible for this tax credit if you meet all of the following eligibility criteria:

  • You were a resident of Saskatchewan on December 31st ;
  • You reported a capital gain in the year from the disposition of qualified farm property or small business corporation shares; and
  • You had taxable income of more than $43,292.

 

Where do I claim it?

H&R Block’s tax software automatically applies this credit to your return provided you have met the eligibility requirements.

 

Where can I learn more?