Fiscal and Financial Planning Guide 2024-2025
Investments > Alternative Minimum Tax (AMT)
The AMT concept was introduced in 1986. It is a personal tax calculation that runs parallel to the regular tax calculation on schedules T691 (federal) and TP-776.42 (Quebec). At the time, the government’s main objective was to limit the use of tax shelters (e.g. flow-through shares, films, QSSP, etc.), which were very popular in the 80s.
Very few clients have been affected by the AMT in recent years. Those who have, often because of an exceptional year (e.g., large capital gain, tax shelters), have generally been able to recoup the AMT surplus the following year as their situation returned to normal. The following table summarizes the main differences between the regular tax calculation and the AMT calculation as of 2024.
The new rules are likely to have a particular impact on individuals with large capital gains.
It is to be noted that ATM calculation does not apply in the year of death.