The Manitoba Mineral Exploration Tax Credit is a non-refundable tax credit available to residents of Manitoba who’ve invested in eligible flow-through shares in a qualified mineral exploration company. The way it works is simple. Flow-through shares allow the company selling them to transfer a portion of their expenses to you, the shareholder, ultimately allowing you to claim a tax credit for these expenses.
If you don’t need to use your entire credit amount to lower your Manitoba tax payable in 2016, you can carry forward unused amounts for 10 years or back 3 years. You can find your unused credit amount on your most recent notice of assessment or reassessment.
If you have unused credits that you want to apply to a prior year return(s), the amount you apply can’t be more than your Manitoba tax for that year. In order to carryback your credit to your 2015, 2014, and/or 2013 return(s), you’ll need to send an adjustment request to the Canada Revenue Agency (CRA). Remember, you should wait until you receive your 2016 notice of assessment before making the adjustment request to be sure of the credit amount that can be carried back.
Depending on whether you’re an individual investor or a member of a partnership, you’ll receive one of the following two slips, each reporting the qualifying expenses that you’ll need to claim this credit:
- T101: Statement of Resource Expenses (your qualifying expenses will be shown in box 144 of this slip) or
- T5013: Statement of Partnership Income (your qualifying expenses will be shown in box 199 of this slip)
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 that you told us that you lived in MANITOBA on December 31, 2016.
- On the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.
- Select the checkbox labelled I had investments and/or investment income, or I bought and/or sold property.
- Click the PENSION PLANS AND INVESTMENTS icon. You will find yourself here:
- Under the RESOURCE INCOME AND CREDITS heading, select the checkbox labelled Manitoba mineral exploration tax credit (T1241), then click Continue.
- When you arrive at the page for your Manitoba mineral exploration tax credit, enter your information into the tax software.