Yukon Small Business Investment Tax Credit

What’s in this article?

 

What is this?

The Yukon Small Business Investment Tax Credit is a non-refundable tax credit which is used to reduce the territorial tax owing.

The tax credit you can claim is equal to 25% of the value of eligible shares and subordinated debt that you purchased from eligible Yukon businesses during the tax year or in the first 60 days of the following year.

The amount of the credit that you can claim will be shown on your YSBITC-1 Certificate which is issued by the Yukon government. The maximum amount that you can claim for the year is $25,000, including carryforward amounts. Any unused amounts may be carried back 3 years or carried forward up to 7 years. Refer to your Notice of Assessment (NOA) or Notice of Reassessment to determine any unused credit amounts that you may have.

According the Yukon government, eligible small business corporations are private or co-operative corporations with:

  • Less than $25 million in assets;
  • A permanent establishment in the territory; and
  • At least 50% of assets and payroll in the Yukon.

 

Am I eligible?

You are eligible to claim the Yukon Small Business Investment Tax Credit if:

  • You were a resident of Yukon on December 31st;
  • You were at least 19 years of age at the end of the year; and
  • You received a YSBITC-1 Certificate from the Yukon government which shows the credit amount you can claim

 

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 you lived in YUKON 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, continue to follow these steps to claim your Yukon Small Business Investment Tax Credit:

  1. Click the PREPARE tab.
  2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
  3. Click the checkbox labelled I had investments.
  4. Scroll to the bottom of the page and click Continue.
  5. Click the RRSPS AND INVESTMENTS icon. You will find yourself here:
  6. Under the INVESTMENT INCOME heading, click the checkbox labelled Yukon small business investment tax credit.
  7. Scroll to the bottom of the page and click Continue.

When you arrive at the page for the Yukon Small Business Investment Tax Credit, enter your information into the tax software.

 

Where can I learn more?