Variable closed:	1.98%
1 year closed:	2.14%
3 year closed:	2.14%
5 year closed:	2.24%
10 year closed:	3.39%

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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Alternative Minimum Tax

Synonyms:	form T691
Acronyms & abbreviations:	AMT
Notes:	Form T691.
Filed Under:	financial-banking, legal-contracts, taxation
Tags:	taxes

Broadly associated with:	[Government of Canada]
Narrowly associated with:	[Canada Revenue Agency]

Definition of alternative minimum tax (AMT)

alternative minimum tax (AMT): 1. This tax primarily affects high-income taxpayers who shelter some of their income from taxation through certain tax preference items or deductions. It is often referred to as AMT. If your income meets the limit, then you have to recalculate your tax amount that is due based on the separate alternative minimum tax rates and tables.

Related Terms and Acronyms:

before-tax income Earnings before income taxes are paid.
direct tax A tax that is paid straight to the government.
tax deduction An expense that governments allow you to subtract from your income before computing your income tax.
tax deferral The postponement of taxes to a later year, usually by recognizing income or a gain at a later time. Remember, this only delays your tax liability; it doesn't eliminate it.
tax exempt (TE) Income that is not subject to tax. Income exempt from federal tax may, however, be subject to provincial taxation.
tax-sheltered A savings or investment plan that offers significant tax savings.

Broad and Narrow Associations

[Government of Canada]

Canada Mortgage Bonds (CMB) — Est. 2001, Canada, Very Important A fully guaranteed fixed interest rate income investment backed by CMHC (a crown corporation of the Government of Canada).
➥ Issued by the Canada Housing Trust (CHT).
Registered Retirement Savings Plan (RRSP) — Canada, Very Important A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
➥ Tax deferred investment contribution used to reduce income tax.
Registered Education Savings Plan (RESP) — Canada, Very Important An investment vehicle used for a child's post-secondary education.
➥ RESPs are offered by most financial institutions in Canada.
Canada Mortgage and Housing Corporation (CMHC) — Company Est.1946, Canada-wide, Very Important The Canada Mortgage and Housing Corporation: this is a Federally run institution that provides banks and lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure CMHC assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "G.E. Capital."
➥ Insures Canadian mortgage lenders.
Home Buyers' Plan (HBP) — Canada, Very Important A way for a homebuyer to use part of his or her RRSP as a down payment on a mortgage.
➥ Government assistance for first-time homebuyers.

[Canada Revenue Agency]

Registered Retirement Savings Plan (RRSP) — Canada, Very Important A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
➥ Tax deferred investment contribution used to reduce income tax.
Home Buyers' Plan (HBP) — Canada, Very Important A way for a homebuyer to use part of his or her RRSP as a down payment on a mortgage.
➥ Government assistance for first-time homebuyers.
registered retirement income fund (RRIF) — Canada, Important
Home Renovation Tax Credit (HRTC) — Canada, Important
Canada Revenue Agency (CRA) — Company, Canada, Important