TP-1029.8.36.VP-V - Tax Credit for Interest on a Loan Granted by a Seller-Lender and Guaranteed by La Financière agricole du Québec

1. The term “assistance” refers to any government assistance and any non-government assistance that the taxpayer received, is entitled to receive or may reasonably expect to receive on or before the filing deadline of this form for the income tax year concerned. The term does not include any amount received and repaid in the year for which the tax credit is being claimed. “Government assistance” and “non-government assistance” are defined in section 1029.6.0.0.1 of the Taxation Act.
2. The phrase “benefit or advantage” refers to any benefit or advantage that the person or partnership obtained, is entitled to obtain or may reasonably expect to obtain on or before the filing deadline of this form for the income tax year concerned. The phrase does not refer to any amount received and repaid in the year for which the tax credit is being claimed. A benefit or advantage may be a reimbursement, compensation, guarantee or proceeds of disposition of property that exceed the fair market value of the property, or may be granted in any other form or manner.
3. The term “percentage interest” refers to the taxpayer’s share of the partnership’s income (or loss) for its fiscal period, divided by the partnership’s income (or loss) for its fiscal period. If the partnership has no income or loss for its fiscal period, do the calculation as if the partnership had income of $1,000,000.
4. If the taxpayer is a member of a qualified partnership through a number of groups of interposed partnerships, calculate the taxpayer’s percentage interest in the qualified partnership separately for each such group, and complete the form as follows:
   • On line 30 (columns A to E), enter the required information about all the interposed partnerships in each group.
   • On line 31 (columns A to D), enter the required information about the qualified partnership.
   • On line 32, enter the taxpayer’s total percentage interest in the qualified partnership (the sum of the taxpayer’s percentage interests in the qualified partnership, calculated for each group).
   • Complete lines 33 and 34.
5. To determine the amount to be entered on this line, recalculate the tax credit for the previous year as if the corporation had never received, in the previous year, the assistance, benefit or advantage repaid in the year concerned. To do so, use the amounts entered on the copy of form TP-1029.8.36.VP-V completed for the previous taxation year. The amount to be entered corresponds to the amount by which the recalculated tax credit exceeds the tax credit for the previous year.

See Also

Income Tax Return Guide – Line 462