# BC taxes on T3 that allocate all its income
**URL:** https://www.protaxcommunity.com/t/bc-taxes-on-t3-that-allocate-all-its-income/10387
**Category:** Tax Topics
**Created:** [March 21, 2025, 10:39pm UTC](https://www.protaxcommunity.com/t/bc-taxes-on-t3-that-allocate-all-its-income/10387 "2025-03-21T22:39:06Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@fabien](https://www.protaxcommunity.com/u/fabien)
#### Post date: [March 21, 2025, 10:39pm UTC](https://www.protaxcommunity.com/t/bc-taxes-on-t3-that-allocate-all-its-income/10387/1 "2025-03-21T22:39:06Z")
Am I missing something?
I have a BC Family Trust with only non-eligible dividend income. There is about $800 for professional fees and the same amount of income retained to cover the expense. All the other non-eligible dividends income is allocated to beneficiaries, but I’m left with a small amount of taxes owing (over $2).
Looking into it, it’s BC taxes on the difference between the 20.5% tax rate on the dividend gross up, and the 15% dividend tax credit on the gross up.
I feel like I’ve done T3 for many years and never had any taxes owing due to gross-up. Did I just luck out in previous years that there was always interest or eligible dividends? What am I missing (if anything)?
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### Author:  [@RichardSpar](https://www.protaxcommunity.com/u/RichardSpar)
#### Post date: [March 28, 2026, 7:46pm UTC](https://www.protaxcommunity.com/t/bc-taxes-on-t3-that-allocate-all-its-income/10387/2 "2026-03-28T19:46:35Z")
Whoops this reply was to something a year ago.
Yeah sounds like either in previous years you had eligible divs that offset the gross-up with the dividend tax credit AND/OR the prior years were before the changes to the minimum tax rules, in particular the rate increase from 15 to 20.5%.