How do i claim logging in B.C. so i get the federal tax credit applied to 2014 taxes?

[lenewa]

if it is under FARMING, does it calculate the federal tax credit and then somehow let you apply it?

[Delphision · Accepted solution]

Logging income is reported as usual on a T2125 federally, but it is also reported on a separate provincial Logging tax return.  This is why there is a tax credit for taxes already paid provincially.

Federal logging tax credit
If you paid a logging tax to a province for logging operations you performed in the province, you may be able to claim a logging tax credit. To calculate your credit, use the lesser of the following two amounts for each province in which you had a logging operation:

• 66.6667% of the logging tax paid for the year to the province; or
• 6.6667% of your net logging income for the year in the province.

Your allowable credit is the total of the credits for the year for all provinces, up to 6.6667% of your taxable income (line 260) not including any amounts on lines 208, 214, 215, 219 and 220.

Click on the provincial tab at the top and then tick the box for logging tax credit.