# T691 alternative mimimum tax headache



## hboy43 (May 10, 2009)

Hi:

Using Studio tax, I get "Your return is subject to the rare alternative minimum tax condition...". Form T691 does not seem to exist in Studio tax, so I found a PDF at CRA and spent a half hour filling it out before giving up in disgust in part 2 of 8 or 10 parts. Good grief what nonsense.

I think the only reasonable plan is to file as is and let CRA minimum tax me and just pay the month's interest on whatever else more they want.

hboy43


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## OptsyEagle (Nov 29, 2009)

I can't help with the AMT except to say it would be nice if the government, once and for all, figured out that it is really just an annoyance and has very little benefit in the area of making taxation fair.

That being said, my studiotax has a form T691. Just click on "forms" in the top area. Scroll down on Federal Forms and highlight T691 and with the downarrow below drop it into the added forms section. It should now form part of your tax return.


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## hboy43 (May 10, 2009)

OptsyEagle, I looked up and down the forms list and did not see it. I'll look again. Thanks.


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## AltaRed (Jun 8, 2009)

hboy43 said:


> OptsyEagle, I looked up and down the forms list and did not see it. I'll look again. Thanks.


I can confirm it is on the Federal forms list.


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## hboy43 (May 10, 2009)

Hi:

Thanks again guys. Studio tax had already moved it into my added forms area, and I was looking in the available forms area.

So I am paying an additional 2364.83 due to AMT. So now my question would be is this recoverable some other year when I am not so flush or is it just gone forever... A while later, yes it seems that this amount can go to line 427 of schedule 1 another year.

I wonder if moving the charitable donations from my wife's return to mine will make any difference. Sigh. A while later, no makes no difference.

hboy43


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## OptsyEagle (Nov 29, 2009)

I am going by memory here, but I think unless you get hit with AMT next year or in the next 7 years I think, this additional tax will be refunded in any of those years that no AMT is payable. That is why I think it is kind of useless for the vast majority of taxpayers that get hit with it. 

The idea of AMT came about over the worry that some guy, who earns a very high income, may be able to structure it all so that it comes to him in the form of capital gains, stock options, dividends, etc., and/or has a crapload of carrying charges and CCA deductions. I suppose there might be a few of those Canadians around. AMT is designed that if you pay less tax, YEAR AFTER YEAR, by utilizing these preferentially taxed forms of income, on a fairly high income, then they take away those advantages with AMT. If it ends up being just a one year event, then they figure they nailed the wrong guy and give it back to you the next year. If after 7 years, I think, you have not had a year with no AMT, they keep it.


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## domelight (Oct 12, 2012)

hboy43 said:


> Hi:
> 
> Thanks again guys. Studio tax had already moved it into my added forms area, and I was looking in the available forms area.
> 
> ...


AMT will be a fixed calculation the portion that is recoverable is the amount that AMT exceeds regular tax, which can be applied against tax in the next seven years. (if unused it is forfeited)

I would encourage you to go back and review your donations. although it will not change your payable it will likely increase the recoverable portion.


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