2017-04-05 00:00:00 Taxes English Looking for ways to lower your tax liability? See if you qualify for the diverse investment tax credit. Both individuals and corporations... https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/06/08213907/Business-Owners-May-Claim-Investment-Tax-Credit-On-Equipment-Purchases.jpg Claim the Investment Tax Credit

Claim the Investment Tax Credit

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The investment tax credit is a valuable credit for qualifying individuals and corporations. There are several different ways to qualify for this credit. In some cases, you can qualify if your business has created a job for an apprentice. You may also qualify if you have invested in new buildings or machinery for use in farming, fishing, logging, or manufacturing in the Atlantic region of Canada. You can also qualify if you have spent money on certain types of scientific research and development. Although each of these credits has slightly different names, they all fall under the umbrella of the investment tax credit. Individuals can claim investment tax credits on Form T2038(IND), and corporations may use Form T2SCH31. You should file this form with your T1 individual or your T2 corporate return. If you forget to apply for the investment tax credit, you can file this form retroactively within 12 months of submitting your return. After that point, you need to go through the process of amending your return. If you don’t want to use all of the credit in the tax year the expenses were incurred, you may roll the credit back three years or forward 20 years. For example, if you earn a $2,000 credit but you don’t owe any tax this year, you may want to save the credit and use it in the future.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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