Did you pay logging tax on the income you earned from logging operations in British Columbia? If you did, you might be able to claim the British Columbia logging tax credit. This non-refundable tax credit is equal to one third of the logging tax payable shown on your FIN 542S: Logging tax return of income or your FIN 542P: Logging tax return of income for processors.
Keep in mind, the B.C. logging tax credit can’t be carried back or forward to another year. It has to be applied to the same year you paid your taxes.
Eligible logging operations include:
- The sale of logs or standing timber
- The sale of the right to cut standing timber
- The sale of primary and secondary forest products produced from logs (like lumber or pulp and paper)
- Exporting logs
If you processed logs harvested in B.C. into primary and secondary forest products, complete form FIN 542P; if you earned your income from selling B.C. logs without processing them, then use form FIN 542S instead. Unfortunately, neither of these forms are supported in H&R Block’s tax software, so you’ll need to fill out and submit the applicable form manually. You can do this in one of two ways:
- Sign in to your eTaxBC account and submit the form electronically or
- Complete a paper copy of the applicable form and mail it to the British Columbia Ministry of Finance at the following address:
PO Box 9444 Stn Prov Govt
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
Before you begin, make sure you tell us that you lived in BRITISH COLUMBIA on December 31, 2016.
- On the PREPARE tab, click the LET’S TALK ABOUT 2016 icon.
- Select the checkbox labelled I worked for myself and then select the province or territory of your self-employment.
- Click the EMPLOYMENT icon. You’ll find yourself here:
- Under the CREDITS AND REBATES heading, select the checkbox labelled British Columbia logging tax credit, then click Continue.
- When you arrive at the page for the British Columbia logging tax credit, enter your information into the tax software.