Tax wiki
s. 120.2
PART I — Income Tax · DIVISION E — Computation of Tax · SUBDIVISION A — Rules Applicable to Individuals · Annual Adjustment of Deductions and Other Amounts
Minimum tax carry-over
Not yet annotated · Text current to 2026-06-21 · section last amended 2024-06-20
Current text
There may be deducted from the amount that, but for this section, section 120 and subsection 120.4(2), would be an individual’s tax payable under this Part for a particular taxation year such amount as the individual claims not exceeding the lesser of
the portion of the total of the individual’s additional taxes determined under subsection 120.2(3) for the 7 taxation years immediately preceding the particular year that was not deducted in computing the individual’s tax payable under this Part for a taxation year preceding the particular year, and
the amount, if any, by which
the amount that, but for this section, section 120 and subsection 120.4(2), would be the individual’s tax payable under this Part for the particular year if the individual were not entitled to any deduction under section 126
exceeds
the individual’s minimum amount for the particular year determined under section 127.51.
Additional tax determined
(3)For the purposes of subsection 120.2(1), additional tax of an individual for a taxation year is the amount, if any, by which
the individual’s minimum amount for the year determined under section 127.51
exceeds the total of
the amount that, if this Act were read without reference to section 120, would be the individual’s tax payable under this Part for the year if the individual were not entitled to any deduction under section 126, and
that proportion of the amount, if any, by which
the individual’s special foreign tax credit for the year determined under section 127.54
exceeds
the total of all amounts deductible under section 126 from the individual’s tax for the year
that
the amount of the individual’s foreign taxes for the year within the meaning assigned by subsection 127.54(1)
is of
the amount that would be the individual’s foreign taxes for the year within the meaning assigned by subsection 127.54(1) if the definition foreign taxes in that subsection were read without reference to “2/3 of”.
Where subsection (1) does not apply
(4)Subsection (1) does not apply in respect of an individual’s return of income filed under subsection 70(2), paragraph 104(23)(d) or 128(2)(f) or subsection 150(4).
Source: Justice Laws Website. Not an official version.
Historic text
Immediately preceding version, in force from 2013-06-26 to 2024-06-19:
Show the text in force 2013-06-26 to 2024-06-19
Minimum tax carry-over
120.2 (1) There may be deducted from the amount that, but for this section, section 120 and subsection 120.4(2), would be an individual’s tax payable under this Part for a particular taxation year such amount as the individual claims not exceeding the lesser of
(a) the portion of the total of the individual’s additional taxes determined under subsection 120.2(3) for the 7 taxation years immediately preceding the particular year that was not deducted in computing the individual’s tax payable under this Part for a taxation year preceding the particular year, and
(b) the amount, if any, by which
(i) the amount that, but for this section, section 120 and subsection 120.4(2), would be the individual’s tax payable under this Part for the particular year if the individual were not entitled to any deduction under any of sections 126, 127 and 127.4
exceeds
(ii) the individual’s minimum amount for the particular year determined under section 127.51.
Additional tax determined
(3) For the purposes of subsection 120.2(1), additional tax of an individual for a taxation year is the amount, if any, by which
(a) the individual’s minimum amount for the year determined under section 127.51
exceeds the total of
(b) the amount that, if this Act were read without reference to section 120, would be the individual’s tax payable under this Part for the year if the individual were not entitled to any deduction under any of sections 126, 127 and 127.4, and
(c) that proportion of the amount, if any, by which
(i) the individual’s special foreign tax credit for the year determined under section 127.54
exceeds
(ii) the total of all amounts deductible under section 126 from the individual’s tax for the year
that
(iii) the amount of the individual’s foreign taxes for the year within the meaning assigned by subsection 127.54(1)
is of
(iv) the amount that would be the individual’s foreign taxes for the year within the meaning assigned by subsection 127.54(1) if the definition foreign taxes in that subsection were read without reference to “2/3 of”.
Where subsection (1) does not apply
(4) Subsection (1) does not apply in respect of an individual’s return of income filed under subsection 70(2), paragraph 104(23)(d) or 128(2)(f) or subsection 150(4).
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 120.2
- 1998, c. 19, s. 137
- 2000, c. 19, s. 29
- 2001, c. 17, s. 104
- 2013, c. 34, s. 254
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 120.2 links to the one before it.
Enacting and amending legislation
- R.S., 1985, c. 1 (5th Supp.), s. 120.2; 1998, c. 19, s. 137; 2000, c. 19, s. 29; 2001, c. 17, s. 104; 2013, c. 34, s. 254
- 2024, c. 17, s. 29
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 120.2.