*** Transcriber's Note: Please set your voice synthesizer to read most punctuation. When you encounter the caret sign at the end of a line, please enter the applicable information, if necessary. *** Canada Revenue Agency T691 E (07) (Page 1 of 4) ALTERNATIVE MINIMUM TAX Use this form to calculate your 2007 federal tax payable under alternative minimum tax. If you are completing a return for a trust, use Schedule 12 of the T3 package. Complete Parts 1, 2, and 8 if you do not have to pay minimum tax in 2007 and you are applying a minimum tax carryover from previous years against your 2007 tax payable. Alternative minimum tax does not apply to a person who died in 2007 or to returns filed under subsection 70(2) or 150(4), or under paragraph 104(23)(d) or 128(2)(e) of the Income Tax Act (the Act). Attach a completed copy of this form to your 2007 return. If you had business income in 2007 from a province or territory other than the one in which you lived at the end of the year, or from another country, you may also have to complete and attach a copy of Form T2203, Provincial and Territorial Taxes for 2007 - Multiple Jurisdictions. Part 1 - Adjusted taxable income and minimum amount (notes 1 through 5 indicated on this page are explained on page 1 and 2) Line 1: Taxable income from line 260 of your return, or the amount that you would have entered on line 260 if the instruction "if negative, enter "0 " on lines 236 and 260 were replaced with the instruction "if negative, enter the result in brackets". ^ Film property (Note 1) Line 2: Capital cost allowance (CCA) and carrying charges claimed on certified film property acquired before March 1996 (usually included on lines 221 and 232 of your return) ^ Line 3: Net income from film property before CCA and carrying charges (if negative, enter "0") (Note 2) ^ Line 4 and line 6782: Line 2 minus line 3 (if negative, enter "0") = ^ Rental and leasing property (Note 1) Line 5: Capital cost allowance (CCA) and carrying charges claimed on rental and leasing property (included on line 126 of your return) ^ Line 6: Net income from rental and leasing property before CCA and carrying charges (if negative, enter "0") (Note 2) ^ Line 7 and line 6783: Line 5 minus line 6 (if negative, enter "0") = ^ Tax shelters, limited partnerships, and non-active partners Line 8: Losses from partnerships of which you are a limited or non-active partner, or partnerships that are tax shelters (Note 3) ^ Line 9: Amounts deductible for properties that are tax shelters (Note 4) ^ Line 10: Carrying charges for acquiring an interest in a partnership of which you are a limited or non-active partner, or which owns a rental or leasing property or a film property (included on line 221 of your return) (Note 5) ^ Line 11 and line 6784: Add lines 8, 9, and 10. = ^ Resource property and flow-through shares Line 12: Total of all resource expenditures, depletion allowances, and carrying charges for resource property and flow-through shares (included on lines 221, 224, and 232 of your return) ^ Line 13: Income (including royalties) from production of petroleum, gas, and minerals, before carrying charges, resource expenditures, and depletion allowances included on line 12 (if negative, enter "0") ^ Line 14: Income from dispositions of foreign resource properties, and recovery of exploration and development expenses (if negative, enter "0") ^ Line 15: Line 13 plus line 14 = ^ Line 16 and line 6786: Line 12 minus line 15 (if negative, enter "0") = ^ Non-taxable part of capital gains reported in the year Line 17: Amount from line 197 on Schedule 3 of your return; if negative, enter "0" on line 24; do not include a reserve from any year before 1986. ^ Line 18: Capital gains (or losses) arising from mortgage foreclosures and conditional sales repossessions from lines 124 and 155 of Schedule 3 ^ Line 19 and line 6788: Part of total capital gains included on line 17 that is exempt from Canadian tax under a tax treaty (include on line 256) ^ Line 20 and line 6789: Capital gains on gifts of certain capital property from lines 1 and 2 of column 8 of Form T1170) ^ Line 21 and line 6787: Certain capital gains from a testamentary trust (for details, contact its legal representative) ^ Line 22: Add lines 18 to 21. = ^ Line 23: Line 17 minus line 22 (this amount can be negative) = ^ Line a): Multiply line 23 by 30% (do not show it in brackets). ^ Line b): Enter the amount from line 127 of your return. ^ Line 24: If line 23 is positive, enter the amount from line a) on line 24; if line 23 is negative, enter the amount from line a) or b), whichever is less, and show it in brackets. ^ Line 25: Add lines 1, 4, 7, 11, 16, and 24. = ^ Note 1 - If you are a member of a partnership, include your share of the income and deductions for the partnership's fiscal period ending in 2007. Do not include any amounts that you have to include on lines 8 to 10 of this form. Note 2 - For film property and rental and leasing property, first add income from these investments (before CCA or carrying charges, if they apply) and net taxable capital gains, if any, from dispositions of such investments. Then subtract losses from these investments (before CCA or carrying charges, if they apply). If the result is negative, enter "0". Notes 3 to 5 are on the next page. Do not use this area 6790 T691 E (07) (Page 2 of 4) Part 1 - Adjusted taxable income and minimum amount (continued) Line 26: Amount from line 25 on the first page of this form ^ Line 27: Employee home relocation loan deduction from line 248 of your return ^ Line 28 and line 5569: Security options deduction under paragraph 110(1)(d) included on line 249 of your return (total of all amounts in box 39 of your T4 slips plus 50% of the amount on line 4 of Form T1212, Statement of Deferred Security Options Benefits) ^ Line 29 and line 5570: Gifts of securities acquired under a security option plan included on line 249 of your return. ^ Line 30: Amount from line 28 above ^ Line 31: Amount from line 29 above ^ Line 32: Line 30 minus line 31 (if negative, enter "0") = ^ Line 33: Multiply line 32 by 40%. ^ Line 34 Line 29 plus line 33 = ^ Line 35: Line 28 minus line 34 (if negative, enter "0") = ^ Line 36: Security options deduction under paragraph 110(1)(d.1) included on line 249 of your return (total of all amounts in box 41 of your T4 slips) ^ Line 37: Deduction included on line 249 of your return for a security received as a prospector or grubstaker ^ Line 38: Deduction included on line 249 of your return for certain dispositions of securities received from a deferred profit-sharing plan ^ Line 39 and line 5571: Add lines 36, 37, and 38. = ^ Line 40: Multiply line 39 by 60%. ^ Line 41: If you claimed losses incurred in another year on line 251 or 252 of your 2007 return, indicate the part of these losses that are limited partnership losses and/or CCA or carrying charges claimed on multiple-unit residential buildings, rental and leasing property, certified feature films, or certified productions, as well as the part for resource expenditures and depletion allowances (Note 6). ^ Line 42: Add lines 26, 27, 35, 40, and 41 (Note 7). = ^ Line c): Amount from line 120 of your return minus Amount from line 180 of your return multiplied by 20% = ^ Line d): Amount from line 120 minus line 180 of your return multiplied by 31.0345% = ^ Line 43: Line c) plus line d) = ^ Line 44: Amount from line 217 of your return multiplied by 60% = ^ Line 45: Net non-deducted capital losses from line 156 in Part 9 (Note 8) ^ Line 46: Add lines 43, 44, and 45. = ^ Line 47: Line 42 minus line 46 (if negative, enter "0"). Adjusted taxable income = ^ Line 48: Basic exemption. Minus 40,000.00 Line 49: Line 47 minus $40,000 (if negative, enter "0"). Net adjusted taxable income = ^ If line 49 is "0", you are not subject to alternative minimum tax. If you want to apply a minimum tax carryover from previous years against your 2007 tax payable, complete parts 2 and 8 and attach a copy of this form to your return. Also, complete Schedule 1 and your return as usual. Line 50: Enter the amount from line 49. ^ Line 51: Federal tax rate 15% Line 52: Gross minimum amount: multiply line 50 by 15%. = ^ Line 53: Total non-refundable tax credits from line 350 of Schedule 1 ^ Line 54: Enter the total of lines 314, 318, 324, and 326 of Schedule 1. ^ Line 55: Federal tax rate 15% Line 56: Multiply line 54 by 15%. = ^ Line 57: Line 53 minus line 56. = ^ Line 58: Line 52 minus line 57 (if negative, enter "0") Minimum amount = ^ If line 58 is "0", you are not subject to alternative minimum tax. If you want to apply a minimum tax carryover from previous years against your 2007 tax payable, complete parts 2 and 8 and attach a copy of this form to your return. Also, complete Schedule 1 and your return as usual. Note 3 - If you are a limited or non-active partner of a partnership, or if your interest in the partnership is in a tax shelter that the partnership holds, include on line 8 your share of the net losses of the partnership from each source (allowable capital losses, business losses, and property losses) that is more than the amount allowed under paragraph 127.52(1)(c.1) of the Act. Generally, the amount allowed under that paragraph should correspond with the net taxable capital gains that were attributed to you by the partnership or that you have realized on the disposition of your interest in the partnership. These losses are generally reported on line 122 of your return, except rental (line 126) and farming losses (line 141). Note 4 - Also include all other amounts deducted for property for which an identification number is needed or has been obtained under section 237.1 of the Act, such as carrying charges for the acquisition of the property. Include amounts from Form T5004, Claim For Tax Shelter Loss or Deduction, that you claimed as an income or a loss on your return. Do not include amounts that you have to include on any other line of this form. Note 5 - Enter on this line carrying charges for the acquisition of an interest in a partnership of which you were a limited or non-active partner, or in a partnership that owns a rental or leasing property or a film property. Include only carrying charges that are more than your share of the partnership's income. Note 6 - Calculate the limited partnership losses and/or restricted farm losses, farm losses, and non-capital losses for other years from CCA and carrying charges, using the rules in effect for the year. If you need help, contact us. Note 7 - If you elect under section 40 of the Income Tax Application Rules, include the elected income in the total on line 42. Note 8 - If you have unapplied capital losses from other years, complete Part 9 and enter the net non-deducted capital losses on line 45. This applies even if you have not claimed any net capital losses of other years on line 253 of your return. However, if line 23 in Part 1 is "0" or negative, and you do not have any unapplied net capital losses from before May 23, 1985, do not complete Part 9. Enter "0" on line 45. T691 E (07) (Page 3 of 4) Part 2 - Basic federal tax Line 59: Enter the amount from line 404 of Schedule 1 ^ Line 60: Total non-refundable tax credits from line 350 on Schedule 1 ^ Line 61: Dividend tax credit: amount from 425 on Schedule 1 ^ Line 62: Overseas employment tax credit from Form T626, Overseas Employment Tax Credit ^ Line 63: Add lines 60 to 62 = ^ Line 64: Tax payable before minimum tax carryover: line 59 minus line 63 = ^ Line 65: Minimum tax carryover applied in 2007 from line 123 in Part B ^ Line 66: Line 64 minus line 65. Basic federal tax = ^ Part 3 - Regular net federal tax payable Line 67: Federal surtax on business income earned outside Canada: multiply the amount from line 66 by 48%. If you have to pay provincial or territorial tax to multiple jurisdictions, multiply the result by the percentage in Column 5 of line 5222 on Form T2203. In either case, enter the result on this line. ^ Line 68: Line 66 plus line 67 = ^ Line 69: Federal foreign tax credit from line 10 of Form T2209, Federal Foreign Tax Credits ^ Line 70: Federal logging tax credit = ^ Line 71: Line 69 plus line 70 = ^ Line 72: Line 68 minus line 71 (if negative, enter "0"). Federal tax payable = ^ Line 73: Federal political contribution tax credit from line 410 of Schedule 1 ^ Line 74: Investment tax credit (amount entered on line E of Form T2038(IND)) ^ Line 75: Labour-sponsored funds tax credit from line 414 of Schedule 1 ^ Line 76: Add lines 73 to 75. = ^ Line 77: Line 72 minus line 76 (if negative, enter "0"). Regular net federal tax payable = ^ Part 4 - Special foreign tax credit (terms identified by the letters a) and e) are defined on Form T2209) Line 78 and line (i): Foreign business income (total business income earned in the foreign country minus allowable expenses and deductions for the foreign income). ^ Line 79: Foreign non-business income (on which non-business income tax was paid to a foreign country) a)) ^ Line 80: Total foreign income. (Line 78 + line 79) = ^ Line 81: Applicable rate 15% Line 82: Foreign income limit for special foreign tax credit. (Line 80 multiplied by 15%) = ^ Line 83 and line (ii): Total non-business income tax paid to a foreign country a) multiplied by 66.6666% = ^ Line 84: Total business income tax paid to a foreign country e). ^ Line 85: Foreign taxes paid for special foreign tax credit. (Line 83 + line 84) = ^ Line 86: Enter the amount from line 82 or the amount from line 85, whichever is less. ^ Line 87: Enter the amount from line 86 or the amount from line 69, whichever is more. Special foreign tax credit ^ Part 5 - Obligation to pay alternative minimum tax Line 88: Minimum amount from line 58 ^ Line 89: Special foreign tax credit from line 87 ^ Line 90: Net minimum tax payable: line 88 minus line 89 (if negative, enter "0") = ^ Line 91: Regular net federal tax payable from line 77 ^ Line 92: Federal surtax from line 67 ^ Line 93: Line 91 minus line 92 (if negative, enter "0") = ^ Line 94: Line 90 minus line 93 (if negative, enter "0") = ^ If line 94 is "0", you are not subject to alternative minimum tax. If you want to apply a minimum tax carryover from previous years against your 2007 tax payable, complete part 8 and attach a copy of this form to your return. Also, complete Schedule 1 and your return as usual. If the amount on line 94 is positive, complete parts 6 and 7. Part 6 - Federal tax payable (under alternative minimum tax) Line 95: Basic federal tax from line 66 ^ Line 96: Amount from line 12 of Form T1206, Tax on Split Income ^ Line 97: Line 95 minus line 96 (if negative, enter "0") = ^ Line 98: Minimum amount from line 88 ^ Line 99: Enter amount 97 or amount 98, whichever is more. ^ Line 100: Amount from line 12 of Form T1206, Tax on Split Income ^ Line 101: Line 99 plus line 100 (Note 9) = ^ Line 102: Net minimum tax payable from line 90 ^ Line 103: Federal surtax on business income earned outside Canada: multiply the amount from line 101 by 48%. If you have to pay provincial or territorial tax to multiple jurisdictions, multiply the result by the percentage in Column 5 of line 5222 on Form T2203. In either case, enter the result on this line. ^ Line 104: Line 102 plus line 103 = ^ Line 105: Amount from line 14 of Form T1206, Tax on Split Income ^ Line 106 and line 6791: Enter amount 104 or amount 105, whichever is more. Enter this amount on line 417 of Schedule 1 ^ Note 9 - Use the amount on line 101 as your basic federal tax (instead of line 429 of Schedule 1) when you calculate any refundable Quebec or Yukon First Nations abatement. If you have to pay provincial or territorial tax to multiple jurisdictions and have income allocated to Quebec, enter the amount from line 101 on line 11 in Part 2 of Form T2203 to calculate any refundable Quebec abatement. T691 E (07) (Page 4 of 4) Part 7 - Additional taxes paid for minimum tax carryover (terms identified by the letters a) and e) are defined on Form T2209) Line 107: Minimum amount from line 88 ^ Line 108: Basic federal tax from line 66 ^ Line 109: Federal tax on split income from line 5 of Form T1206, Tax on Split Income ^ Line 110: Line 108 minus line 109 (if negative, enter "0") = ^ Line 111: Special foreign tax credit from line 87 ^ Line 112: Federal foreign tax credit from line 69 ^ Line 113: Line 111 minus line 112 = ^ Line 114: Line 113 multiplied by Foreign taxes paid for special foreign tax credit (line 85 in Part 4) divided by Foreign taxes paid (non-business income tax paid to a foreign country a) plus business income tax paid to a foreign country e)) = ^ Line 115: Line 110 plus line 114 = ^ Line 116: Line 107 minus line 115 (if negative, enter "0") Additional taxes paid for minimum tax carryover = ^ Part 8 - Applying a minimum tax carryover from previous years against 2007 tax payable Line 117: Minimum tax carryover from previous years (2000 to 2006). ^ Line 118: Tax payable before minimum tax carryover from line 64 ^ Line 119: Federal tax on split income from line 5 of Form T1206, Tax on Split Income ^ Line 120: Line 118 minus line 119 = ^ Line 121: Minimum amount from line 58 ^ Line 122: Maximum carryover that can be applied in 2007: line 120 minus line 121 (if negative, enter "0") = ^ Line 123: Minimum tax carryover applied in 2007: Claim an amount that is not more than line 117 or 122, whichever is less, and enter it on line 427 of Schedule 1. ^ Line 124: Balance of minimum tax carryover available for later years, if any: line 117 minus line 123 = ^ Line 125: Additional 2007 taxes for carryover to later years from line 116 ^ Line 126: Line 124 plus line 125 = ^ Line 127: Unapplied 2000 minimum tax carryover ^ Line 128: Total minimum tax carryover available for 2008: line 126 minus line 127 = ^ Part 9 - Net non-deducted capital losses (Complete this part only if line 23 in Part 1 is positive or you have any unapplied net capital losses from before May 23, 1985.) Line 129: Amount from line 23 in Part 1 ^ Line 130: Capital gains deduction from line 254 of your return (Note 10) ^ Line 131: Capital gains available for capital losses of other years: line 129 minus line 130 = ^ Line 132: Pre-1988 unapplied net capital losses. Multiplied by 2 = ^ Line 133: 1988 and 1989 unapplied net capital losses. Multiplied by 3 over 2 = ^ Line 134: 1990 through 1999 unapplied net capital losses. Multiplied by 4 over 3 = ^ Line 135: 2000 unapplied net capital losses. Divided by inclusion rate* = ^ Line 136: 2001 through 2006 unapplied net capital losses. Multiplied by 2 = ^ Line 137: Add lines 132 to 136 (Note 11). = ^ * You can find this information on your Notice of Assessment or Notice of Reassessment for 2000, or by contacting us. Line 138: Adjusted capital losses of other years applied against total capital gains: Enter the amount from line 131 or line 137, whichever is less. ^ Line 139: Unapplied net capital loss incurred before May 23, 1985. (if none, enter "0" on line 151) multiplied by 2 = ^ Capital gains deductions claimed: Line 140: In 2001 through 2006. Multiplied by 2 = ^ Line 141: In 2000. Divided by inclusion rate* = ^ Line 142: In 1990 through 1999. Multiplied by 4 over 3 = ^ Line 143: In 1988 and 1989. Multiplied by 3 over 2 = ^ Line 144: Before 1988 multiplied by 2 = ^ Line 145: Add lines 140 to 144. = ^ Line 146: Pre-1986 capital loss balance for 2007: line 139 minus line 145 (if negative, enter "0") = ^ * You can find this information on your Notice of Assessment or Notice of Reassessment for 2000, or by contacting us. Line 147: Line 137 minus line 138 ^ Line 148: Enter the amount from line 146 or line 147, whichever is less. ^ Line 149: Allowable rate 80% Line 150: Line 148 multiplied by 80% = ^ Line 151: Enter the amount from line 150 or $2,000, whichever is less. ^ Line 152: Line 138 multiplied by 80% = ^ Line 153: Adjusted capital losses: line 151 plus line 152 = ^ Line 154: Net capital losses of other years from line 253 of your return ^ Line 155: Line 153 minus line 154. Enter this amount on line 45 of this form. Net non-deducted capital losses = ^ Note 10 - Do not include the part of the capital gains deduction for the disposition of eligible capital property that is qualified farm property or qualified fishing property. Note 11 - Do not include the non-deducted part of capital losses from mortgage foreclosures and conditional sales repossessions. For post-1994 net capital losses, the first paragraph under Note 3 also applies here.