Introduced in 1986, AMT is a parallel tax calculation that applies to high income earning taxpayers, defined as of Jan 1, 2024 as those earning more than $173,000 annually, who could otherwise pay little to no tax due to various deductions and credits. The AMT is \u201calternative\u201d since taxpayers calculate both the amount of their regular tax as per the T1 return net of entirely proper and legitimate deductions and credits and then calculate the AMT adding back into income a list of deductions and credits such as carrying charges and capital gains. Taxpayers are required to pay the higher of either their regular tax, or the AMT.<\/p>\n
By way of a simple example, if the regular tax payable is $100,000 but the AMT calculation results in tax owing of $120,000 then the taxpayer pays the $120,000 and carries forward the $20,000 as a tax credit usable in the next seven years, after which the AMT credit expires.<\/p>\n","protected":false},"featured_media":13381,"template":"","content_type":[41],"topic":[31,29,46],"class_list":["post-14714","resources","type-resources","status-publish","has-post-thumbnail","hentry","content_type-download","topic-flow-through-shares","topic-mining-finance","topic-tax-regulatory"],"acf":[],"yoast_head":"\n