Line 42000 – Net federal tax
Your net federal tax is calculated on your return. It is your federal tax payable on your taxable income minus your federal non-refundable tax credits and various other federal tax credits that may apply to you.
Recapture of investment tax credit
If you have to repay all or part of an investment tax credit that you previously received for scientific research and experimental development, complete Form T2038(IND), Investment Tax Credit (Individuals), to calculate the amount you have to repay.
Enter the result on the line for "Recapture of investment tax credit" in Part C of your return.
Federal logging tax credit
If you paid logging tax to a province for logging operations that you performed in the province, you may be able to claim a logging tax credit.
To calculate your credit for each province where you operated, use the lower of the following amounts for each province you had a logging operation in:
- 66.6667% of the logging tax that you paid to that province for the year
- 6.6667% of your net logging income in that province for the year
Add up the amounts for all provinces for the year, up to 6.6667% of your taxable income from line 26000 of your return, not including any amounts on lines 20800, 20805, 21000, 21400, 21500, 21900, and 22000 of your return.
Enter the result on the line for "Federal logging tax credit" in Part C of your return.
Completing your tax return
Enter on line 42000 of your return the amount of net federal tax that you calculated.