Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2015-08-30 and last amended on 2015-08-01. Previous Versions

Marginal note:Transfer of unused credits to spouse or common-law partner

 For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership (other than an individual who, by reason of a breakdown of their marriage or common-law partnership, is living separate and apart from the individual’s spouse or common-law partner at the end of the year and for a period of 90 days commencing in the year), there may be deducted an amount determined by the formula

A + B - C

where

A 
is the tuition, textbook and education tax credits transferred for the year by the spouse or common-law partner to the individual;
B 
is the total of all amounts each of which is deductible under subsection 118(1), because of paragraph (b.1) of the description of B in that subsection, or subsection 118(2) or (3) or 118.3(1) in computing the spouse’s or common-law partner’s tax payable under this Part for the year; and
C 
is the amount, if any, by which
  • (a) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under subsection 118(1) because of paragraph (c) of the description of B in that subsection, under subsection 118(10) or under any of sections 118.01 to 118.07, 118.3, 118.61 and 118.7)

exceeds

  • (b) the lesser of

    • (i) the total of all amounts that may be deducted under section 118.5 or 118.6 in computing the spouse’s or common-law partner’s tax payable under this Part for the year, and

    • (ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.07, 118.3, 118.61 and 118.7).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 118.8;
  • 1994, c. 7, Sch. VIII, s. 58;
  • 1997, c. 25, s. 29;
  • 1998, c. 19, s. 29;
  • 1999, c. 22, s. 39;
  • 2000, c. 12, ss. 133, 142, c. 19, s. 26;
  • 2007, c. 2, s. 25, c. 29, s. 10;
  • 2009, c. 31, s. 7;
  • 2011, c. 24, s. 32;
  • 2014, c. 20, s. 13.
Marginal note:Tuition, textbook and education tax credits transferred

 In this subdivision, the tuition, textbook and education tax credits transferred for a taxation year by a person to an individual is the lesser of

  • (a) the amount determined by the formula

    A - B

    where

    A 
    is the lesser of
    • (i) the total of all amounts that may be deducted under section 118.5 or 118.6 in computing the person’s tax payable under this Part for the year, and

    • (ii) the amount determined by the formula

      C × D

      where

      C 
      is the appropriate percentage for the taxation year, and
      D 
      is $5,000.
    B 
    is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118 to 118.07, 118.3, 118.61 and 118.7), and
  • (b) the amount for the year that the person designates in writing for the purpose of section 118.8 or 118.9.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1998, c. 19, s. 30;
  • 2001, c. 17, s. 101;
  • 2006, c. 4, s. 66;
  • 2007, c. 2, s. 26;
  • 2009, c. 31, s. 8;
  • 2011, c. 24, s. 33;
  • 2014, c. 20, s. 14.