Line 41700 – Minimum tax

Complete the calculation on line 41700 as shown on your return, unless you have to pay minimum tax.

Minimum tax

Minimum tax limits the tax advantage you can receive in a year from certain incentives.

To find out if you have to pay this tax in 2024, add:

• the amounts shown in B below, plus
• the total of lines 19699 and 19700 of Schedule 3, Capital Gains or Losses, if you have an amount on line 12700 of your return

If the total is:

• $173,205 or less, you probably do not have to pay minimum tax (follow the instruction at line 41700 of your return)
• more than $173,205, you may have to pay minimum tax (complete Form T691, Alternative Minimum Tax, and enter the result on line 41700 of your return)

Below is a list of the most common situations where you may have to pay minimum tax:

A. You reported a taxable capital gain (line 12700)

B. You claimed any of the following amounts:

• a loss (including your share of a partnership loss) resulting from, or increased by, claiming capital cost allowance on rental properties
• a loss from a limited partnership that is a tax shelter
• union, professional, or like dues (line 21200)
• child care expenses (line 21400)
• disability support deduction (line 21500)
• moving expenses (line 21900)
• most carrying charges (line 22100) on certain investments
• interest and financing expenses to earn income from property (line 22100)
• CPP/QPP on employment income or self-employment income or PPIP premiums on self-employment income (lines 22200, 22215, 22300)
• office and employment expenses (line 22900)
• clergy residence deduction (line 23100)
• a deduction for security options (line 24900)
• capital gains on gifts of publicly listed securities (Form T1170)
• limited partnership losses of other years (line 25100)
• non-capital losses of other years (line 25200)
• capital gains deduction (line 25400)

C. You claimed any of the following tax credits:

• federal dividend tax credit (line 40425)
• federal political contribution tax credit (line 41000)
• investment tax credit (line 41200)
• labour-sponsored funds tax credit (line 41400)

Forms and publications

• Income Tax Package
• Schedule 3, Capital Gains or Losses
• Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions
• Form T691, Alternative Minimum Tax