![]() Interest and carrying charges incurred to earn income from property The following are some of the important proposed changes to calculating adjusted taxable income for AMT purposes: Capital gainsĬapital loss carry-forwards and allowable business investment lossesĬapital gains on donations of publicly listed securities The proposed AMT rules will affect Canadian and non-resident individuals who receive a significant portion of their income from tax-preferential sources (such as capital gains) or who have significant deductions or expenses that reduce tax payable under the ordinary rules (such as certain interest charges or non-capital loss carryovers). Budget 2023 proposes significant changes to the existing AMT regime. A taxpayer must pay the higher of the AMT calculated on “adjusted taxable income” and income tax calculated under the ordinary rules. The AMT was designed to ensure high-income individuals pay a minimum amount of tax even when they receive income from sources subject to tax incentives and preferential treatment, or where they benefit from certain credits and deductions. It currently applies at a flat 15% rate, with a standard $40,000 exemption. ![]() The alternative minimum tax (AMT) is, as the name suggests, an alternative tax that is calculated based on fewer deductions, exemptions and tax credits than under the normal income tax calculation rules.
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