Alternative Minimum Tax (AMT) Capital Gains Risk Advisor

A large one-time gain, selling a business, real estate, or exercising options, can trigger AMT even when your regular T1 calculation looks fine. See the exposure before you sign anything.

Reading This Tool

How To Use This Calculator

Enter your regular taxable income (before the gain) and the size of the capital gain you're planning to realize.

The bar chart compares your standard T1 liability against the separately calculated AMT liability, whichever is higher is what's actually owed this year. If AMT exceeds regular tax, that excess isn't lost forever: it converts into a credit claimable over the following 7 years, which is exactly why timing a large gain across fiscal years can matter.

Your Inputs

Regular Taxable Income (Excl. Gain) $150,000

Capital Gain Being Realized $800,000

Province

Under the current AMT framework, capital gains are included at 100% for AMT purposes versus 50% under regular tax, and most non-refundable credits are only 50% allowed. This model uses a combined federal + provincial AMT rate and the increased federal exemption amount.

AMT Exposure

Standard T1 Liability

Calculated AMT Liability

Extra AMT Liability Triggered This Year

Recoverable as a credit against regular tax over the following 7 years

Standard T1 Liability vs. AMT Exposure

Standard T1 AMT Exposure

AMT calculations involve many add-backs beyond capital gains inclusion (stock option deductions, certain trust income, resource deductions and more), none of which are modeled here. This isolates the capital-gains-driven AMT effect specifically, a full AMT calculation needs an actual T691 worksheet.

Timing a large gain over more than one year can change this math completely.

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