Lines 041g of the Federal Dollar Amount column and 040g of the Alberta Dollar Amount column are used solely to enter the deduction as per paragraph 20(1)(e) of the ITA.
When Form Deduction as per Paragraph 20(1)(e) of the ITA is not used
The program calculates the amounts on lines 041g of the Federal Dollar Amount column and 040g of the Alberta Dollar Amount column, but does not display either one in the AT1 Schedule 12, because it assumes that both amounts are identical. The two amounts calculated by the program correspond to the amount on line 395, Deduction as per paragraph 20(1)(e) of the ITA, of Schedule 1, Net Income (Loss) for Income Tax Purposes (Jump Code: 1).
In fact, if it turns out that the Alberta amount differs from the federal amount, you have to enter the Alberta amount using an override on line 040g of the AT1 Schedule 12.
When Form Deduction as per Paragraph 20(1)(e) of the ITA is used
The program calculates the amounts on lines 041g of the Federal Dollar Amount column and 040g of the Alberta Dollar Amount column, but does not display either one in the AT1 Schedule 12 if they are identical.
The amount on line 041g of the Federal Dollar Amount column calculated by the program is equal to the total deduction amount in the “Federal” section of Form Deduction Summary as per Paragraph 20(1)(e) of the ITA (Jump Code: SFINANCING).
The amount on line 040g of the Alberta Dollar Amount column calculated by the program is equal to the total deduction amount in the “Alberta” section of Form Deduction Summary as per Paragraph 20(1)(e) of the ITA (Jump Code: SFINANCING).
If the amounts on lines 041g and 040g calculated by the program are different, they will automatically be displayed on the corresponding lines in the AT1 Schedule 12.
However, if an amount is then overridden on line 395 of Schedule 1, the amount on line 041g will be equal to the amount on line 395 of Schedule 1.
The amount on line 040g of the Alberta Dollar Amount column is equal to the total deduction amount calculated in the “Alberta” section of Form Deduction Summary as per Paragraph 20(1)(e) of the ITA.
If the amounts on lines 041g and 040g are different, they will be displayed on the AT1 Schedule 12.
Finally, if an amount is overridden in Schedule 1 and there is no difference between the total deduction amounts calculated in the “Federal” and “Alberta” sections of Form Deduction Summary as per Paragraph 20(1)(e) of the ITA, it will be prioritized for comparison purposes with the Alberta data (line 040g). Therefore, the amount on line 040g of the Alberta Dollar Amount column will be equal to the amount on line 395 of Schedule 1. There will, therefore, be no difference between the federal and the Alberta amounts for the program.
See Also
Deduction as per Paragraph 20(1)(e) of the ITA
Guide to Completion of the Alberta Corporate Income Tax Return