Free untitled - Canada

T3 ­ 2009

MINIMUM TAX

SCHEDULE 12
Page 1 of 6

Include a completed copy of this schedule with the trust's return. Use this schedule to calculate a trust's minimum tax and minimum tax carryover. See page 4 for trusts not subject to minimum tax in the tax year. For information on how to complete this schedule, see the instructions on pages 4 and 5. To calculate provincial or territorial minimum tax, see pages 5 and 6. Part 1 ­ Calculating net adjusted taxable income for minimum tax
Complete sections C, D, and E only if the trust is claiming losses from these sources. A. Calculating the non-taxable portion of capital gains reported in the year and kept in the trust Do not include taxable capital gains from mortgage foreclosures or conditional sales repossessions. If the trust is reporting deemed dispositions of capital property on Form T1055, Summary of Deemed Dispositions, or capital gains from donated property, you will need to make an adjustment for line 3. Use Chart 1 on page 4. Taxable capital gains (line 21 of Schedule 1) Taxable capital gains allocated and designated to beneficiaries (line 921 of Schedule 9) Capital gains kept in the trust (line 1 minus line 2) Capital gains conversion rate Non-taxable portion of capital gains kept in the trust (line 2A multiplied by line 2B) B. The elected portion of pension benefits under ITAR 40 C. Rental and leasing property Capital cost allowance (CCA) and carrying charges claimed on rental and leasing property 12050 Net income from rental and leasing property before CCA and related carrying charges (if a loss, enter "0"). See the Note on page 4. Loss, if any, created or increased by CCA and related carrying charges (line 5 minus line 6) D. Film property CCA and carrying charges claimed on certified film property acquired after 1987 and before March 1996 Net income reported from certified film property before CCA and related carrying charges (if a loss, enter "0"). See the Note on page 4. Loss, if any, created or increased by CCA and related carrying charges (line 8 minus line 9) E. Resource property, royalties, and flow-through shares Total of all resource deductions, allowances, depletion allowances, and carrying charges related to resource property and flow-through shares Income from production of petroleum, gas, and minerals, including royalties before resource deductions and allowances and depletion allowances and related carrying charges (if a loss, enter "0")
12110 12080 12060

1 q i ½ 12030 - q
12040

3/5

2 2A 2B 3 e 4

5 6 q e 7

8 9 q e 10

12090

11

12120

12

Income from dispositions of foreign resource properties and recovery of exploration and development expenses (if a loss, enter "0") 12130 e q Total resource income (line 12 plus line 13) Loss, if any, created or increased by resource deductions and allowances, depletion allowances, and related carrying charges (line 11 minus line 14)

13 14 q
12160

e e

15 16

F. Limited partnership and tax shelter losses ­ Include the trust's total share of the partnership loss.

G. Limited and specified member partnership interest ­ Amount, if any, by which carrying charges related to acquiring a partnership interest are more than the trust's income from the partnership interest. 12170 e Total additions to taxable income for minimum tax purposes (add lines 3, 4, 7, 10, 15, 16, and 17)

17

q

18

T3 SCH 12 E (09)

(Ce formulaire est disponible en français.)

Part 1 (continued)
Total additions to taxable income for minimum tax purposes (from line 18 on page 1) Total gross-up amount of dividends kept by the trust (line 49 of the return) Allowable business investment losses (line 25 of the return) i Capital gains conversion rate 19 20A 20B e q q e 12220 z e Subtotal (add lines 22 to 24) Net capital losses of other years used in the current year (see "Line 26" on page 5) Capital gains conversion rate Line 26A multiplied by line 26B Adjusted taxable income for minimum tax (line 25 minus line 26) Basic exemption (see "Line 28" on page 5) Net adjusted taxable income for minimum tax (line 27 minus line 28; if negative, enter "0")
12240 z

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3/5 q Line 20A multiplied by line 20B Total deductions from taxable income for minimum tax purposes (line 19 plus line 20) Net additions to taxable income for minimum tax purposes (line 18 minus line 21) Taxable income (line 56 of the return; if a loss, enter the amount in brackets) Adjusted non-capital losses of other years used in the current year (see "Line 24" on page 4)

20 21 22 23 24 25

q 26A 26B q
12260 12270

i q

3/5

q

26 27 28 29

If the amount on line 29 is more than zero, continue completing this schedule. If the amount on line 29 is zero, the trust is not subject to minimum tax. However, you should complete Part 7 to determine the amount of minimum tax carryover available for this year and for future years. Enter "0" on line 70. Include Schedule 12 with the return. If the trust has: taxable income on line 56 of the return, complete Schedule 11; or no taxable income on line 56 of the return, enter "0" on line 81 of the return.

Part 2 ­ Calculating the special foreign tax credit
(Complete only if the trust kept foreign income.) Foreign non-business income for which the trust paid foreign non-business income tax Foreign business income Total foreign income (line 30 plus line 31) Foreign income limit for special foreign tax credit (line 32 Foreign non-business income tax paid 34 Foreign business income tax paid Total foreign taxes paid for special foreign tax credit (line 35 plus line 36) Line 33 or line 37, whichever is less Deductible amount of federal foreign tax credit (line 10 of Form T2209) Special foreign tax credit (line 38 or line 39, whichever is more) i 15%) q i 66.67% q e q 30 31 32 33 35 36 37 38 39
12290 ½

e q

40

Part 3 ­ Obligation to pay minimum tax
i 15%) q Net adjusted taxable income for minimum tax (line 29 Total donations and gifts tax credit (line 20 of Schedule 11) Minimum amount (line 41 minus line 42) Special foreign tax credit (line 40) Net minimum tax payable (line 43 minus line 44) Federal tax payable (line 44 of Schedule 11) 48% surtax on income not subject to provincial or territorial tax (line 32 of Schedule 11) Federal tax before surtax (line 46 minus line 47) Amount by which minimum amount is more than regular federal tax payable (line 45 minus line 48; if negative, enter "0") 41 42 q q 46 47 q q 48 49 43 44 45

If the amount on line 49 is more than zero, complete the rest of this schedule. If the amount on line 49 is zero, the trust is not subject to minimum tax. However, you should complete Part 7 to determine the amount of minimum tax carryover available for this year and for future years. Include Schedule 12 with the return. If the trust has: taxable income on line 56 of the return, complete Schedule 11; or no taxable income on line 56 of the return, enter "0" on line 81 of the return.

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Part 4 ­ Basic federal tax for the year
Basic federal tax (line 31 of Schedule 11) Minimum amount (from line 43) Basic federal tax for the year (line 50 or line 51, whichever is more) 50 51
12420 ½

52

Part 5 ­ Calculating federal tax payable (minimum tax)
Net minimum tax payable (from line 45) Surtax on income not subject to provincial or territorial tax (portion of line 52 not subject to provincial or territorial tax Federal tax payable (line 53 plus line 54) Enter this amount on line 81 of the return. To calculate provincial or territorial minimum tax, use Chart 3 on page 6. i 48%) q e
12550 ½ q

53 54 55

Refundable Quebec abatement (see "Line 56" on page 5) Enter the amount from line 56 on line 87 of the return.

(line 52

i 16.5%) q

56

Part 6 ­ Calculating this year's additional taxes paid for minimum tax carryover
Minimum amount (from line 43) Basic federal tax (line 31 of Schedule 11) Special foreign tax credit (from line 40) Deductible amount of federal foreign tax credit (from line 39) Subtotal (line 59 minus line 60) Amount from line 34 Amount from line 36 Total (line 62 plus line 63) line 61 i line 37 line 64 58 59 q e q 60 61 62 63 64 q e q
12670

57

65 66 67

Total (line 58 plus line 65) Additional taxes available to carry over to later years (line 57 minus line 66; if negative, enter "0")

q

Part 7 ­ Calculating the total minimum tax carryover
Minimum tax carryover from previous years (2002 to 2008) Tax payable before carryover (line 29 of Schedule 11) Minimum amount (from line 43) Maximum carryover that can be applied this year (line 69 minus line 70; if negative, enter "0") If the trust is subject to minimum tax, enter "0". Minimum tax carryover applied this year: Claim an amount that is not more than line 68 or line 71, whichever is less, and enter it on line 30 of Schedule 11. Balance of minimum tax carryover (line 68 minus line 72) Additional taxes available from this year (from line 67) Line 73 plus line 74 Additional 2002 taxes not applied Minimum tax carryover available for next year (line 75 minus line 76) q e q
12760 12690 12680

68

69 70 q 71

72 73 74 75 76 77

q

Is the trust subject to minimum tax?
The following trusts are not subject to minimum tax: a mutual fund trust; a related segregated fund trust; a master trust; and

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a spousal or common-law partner trust, a joint spousal or common-law partner trust, or an alter ego trust if it reports in the year its first deemed disposition on Form T1055, Summary of Deemed Dispositions.

Any other trust is liable to pay minimum tax if the net minimum tax payable on line 45 is more than the regular federal tax payable on line 48. A trust may have to pay minimum tax for the year if it: reports taxable capital gains (line 01 of the return); reports taxable dividends (line 03 of the return); claims a loss resulting from, or increased by, resource expenditures, or claims resource and depletion allowances on resource properties (line 06 or line 19 of the return); makes an election on pension benefits under ITAR 40 (line 02 of the return and line 22 of Schedule 11); claims a loss resulting from, or increased by, capital cost allowance (CCA) or carrying charges claimed on a rental or leasing property (line 09 of the return), or certified films or videotapes (line 06 of the return); has certain losses that limited partners, specified members of a partnership, or partners of a tax shelter deduct for their partnership interest (for this purpose, losses allocated from a partnership are applied against gains from the same partnership source); has losses from tax shelters; or has carrying charges for interests in limited partnerships, tax shelters, rental and leasing properties, or film and resource properties, that increase or create a loss from these sources.

Note
Net income from rental and leasing property, and film property includes income from these investments (before CCA and related carrying charges) plus any net taxable capital gains from the disposition of these investments minus any losses from these investments (before CCA and related carrying charges). You also have to subtract allocated partnership losses from gains from the same partnership source. Line 3 ­ Non-taxable part of capital gains kept in the trust This amount usually equals three-fifths of the taxable capital gains kept in the trust after the allocation and designation of net taxable capital gains to beneficiaries. Do not include taxable capital gains from mortgage foreclosures and conditional sales repossessions. Only the taxable portion of a capital gain from the donation or gift of property is included in the base for determining minimum tax. If the trust reports a capital gain from donated property, you have to make an adjustment for the non-taxable portion of capital gains as well. To make the adjustment, use the following chart. If you have completed Form T1055, you should also use the following chart to make the adjustment.

Chart 1 ­ Adjusted Line 3
Taxable capital gains from line 21 of Schedule 1 Amount from line 25 of Form T1055 (include this amount only if the deemed disposition arises on a day described in D to I of that form) Subtotal (line a plus line b) Net taxable capital gains allocated and designated (3/5 of line 921 from Schedule 9) 30% of capital gains on other donated property from line 18 of Schedule 1 Subtotal (line d plus line e) Total (line c minus line f). Enter this amount on line 3. e q q e q a b 3/5 i 3/5 q d e f g

c

Line 24 ­ Adjusted non-capital losses of other years used in the current year If the trust claimed non-capital losses of other years, you may have to reduce the non-capital losses for minimum tax purposes. This reduction is any portion of the non-capital losses attributable to: capital cost allowance or carrying charges claimed on: ­ rental or leasing property; or ­ films certified by the Canadian Film and Videotape Certification Office; resource expenditures; or resource and depletion allowances. Enter the reduction on line 24. For minimum tax purposes, a non-capital loss that is carried forward is calculated according to the minimum tax rules in effect for the year in which the loss was incurred.

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Line 26 ­ Net capital losses of other years used in the current year You may have claimed a capital loss from previous years on line 52 of the return. If this is the case, you will have to adjust the trust's income for minimum tax purposes. On line 26A, enter the net capital losses of other tax years that you claimed in the current year on line 52 of the return. Do not include capital losses on mortgage foreclosures and conditional sales repossessions. If the amount on line 52 of the return is less than the capital gains remaining in the trust after allocation to beneficiaries, and the trust has additional unapplied losses of other years, you may be able to increase the amount on line 26A. Call us for details. Line 28 ­ Basic exemption We allow a basic exemption of $40,000 to testamentary and grandfathered inter vivos trusts. Allocate the $40,000 basic exemption among the trusts if more than one qualifying trust is formed from contributions by the same individual. To allocate the basic exemption, complete Schedule 6, Trusts' Agreement to Allocate the Basic Exemption From Minimum Tax. On line 28, enter the basic exemption, or the trust's allocated amount of the exemption from Schedule 6. For a definition of testamentary and grandfathered inter vivos trusts, see publication T4013, T3 Trust Guide. Note For all other inter vivos trusts, enter "0" on line 28 of this schedule.

Part 5 ­ Calculating federal tax payable (minimum tax)
Line 56 ­ Refundable Quebec abatement For information, see the instructions for line 45 of Schedule 11 in the T3 Trust Guide.

Part 6 ­ Calculating this year's additional taxes paid for minimum tax carryover
Lines 57 to 67 Use Part 6 to calculate the amount of any additional minimum tax payable by the trust for this year that you can carry over to a future year. You may be able to deduct this amount from the trust's regular tax liability on line 30 of Schedule 11 in future years. You can claim a carryforward for a period of seven years.

Part 7 ­ Calculating the total minimum tax carryover
Lines 68 to 77 Use Part 7 to calculate the minimum tax carryover from previous years that you can claim on Schedule 11 in this year. You can carry over minimum tax from the seven previous tax years. It is in the trust's best interests to apply the oldest available carryover first. For example, apply any carryover from 2003 before any carryover from 2004. Also use Part 7 to calculate the total minimum tax carryover, if any, that may be carried forward to later years.

Provincial and territorial minimum tax payable
Use Chart 3 ­ Calculating Provincial and Territorial Minimum Tax, on the next page, to calculate the trust's provincial and territorial minimum tax payable.

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Chart 3 ­ Calculating Provincial and Territorial Minimum Tax
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _

Newfoundland and Labrador Line 67 Newfoundland and Labrador rate 1 i 51.3% 2

Saskatchewan Line 57 minus line 58 Saskatchewan rate q i 50% 1 2

Newfoundland and Labrador additional minimum tax (line 1 multiplied by line 2). A q Enter amount A on line 20 of Form T3NL. ________________________________________ Nova Scotia 1 Line 67 Nova Scotia rate i 57.5% 2 Nova Scotia additional minimum tax (line 1 multiplied by line 2). B q Enter amount B on line 20 of Form T3NS. ________________________________________ New Brunswick Line 57 minus line 58 New Brunswick rate q i 57% 1 2

Saskatchewan additional minimum tax (line 1 multiplied by line 2). H q Enter amount H on line 22 of Form T3SK. ________________________________________ Alberta Line 57 Alberta rate minus line 58 q i 35% 1 2

Alberta additional minimum tax (line 1 multiplied by line 2). I q Enter amount I on line 13 of Form T3AB. ________________________________________ British Columbia 1 Line 67 2 i 33.7% British Columbia rate British Columbia additional minimum tax (line 1 multiplied by line 2). J q Enter amount J on line 20 of Form T3BC. ________________________________________ Nunavut 1 Line 67 Nunavut rate i 45% 2 Nunavut additional minimum tax (line 1 multiplied by line 2). K q Enter amount K on line 20 of Form T3NU. ________________________________________ Northwest Territories Line 67 Northwest Territories rate 1 i 45% 2

New Brunswick additional minimum tax (line 1 multiplied by line 2). C q Enter amount C on line 20 of Form T3NB. ________________________________________ Prince Edward Island Line 67 Prince Edward Island rate 1 i 57.5% 2

Prince Edward Island additional minimum tax (line 1 multiplied by line 2). D q Enter amount D on line 20 of Form T3PE. ________________________________________ Ontario Line 49 Ontario rate i 40.33% 1 2

Ontario additional minimum tax (line 1 multiplied by line 2). E q Enter amount E on line 20 of Form T3ON. ________________________________________ Manitoba Line 57 Manitoba rate minus line 58 q i 50% 1 2

Northwest Territories additional minimum tax (line 1 multiplied by line 2). L q Enter amount L on line 20 of Form T3NT. ________________________________________ Yukon 1 Line 67 Yukon rate Yukon additional minimum tax (line 1 multiplied by line 2). Enter amount M on line 20 of Form T3YT. i 44% 2

Manitoba additional minimum tax (line 1 multiplied by line 2). Enter amount G on line 22 of Form T3MB.

q

G

q

M