Form T1229 is used to calculate the depletion allowance you’re entitled to claim for your resource expenditure pools, exploration and development expense deduction, and the renounced expenses you received from owning flow-through shares that qualify for investment tax credits.
Based on the nature of your investment you’ll receive a T5, T101, or T5013 slip from the administrator of the venture. You’ll then use the information from one or more of these slips to complete your T1229.
Note: Depending on where you live, you might also be able to claim one of the following provincial credits:
- British Columbia Mining Flow-through Share Tax Credit
- British Columbia Mining Exploration Tax Credit
- Manitoba Mineral Exploration Tax Credit
- Ontario Focused Flow-through Share Tax Credit
- Saskatchewan Mineral Exploration Tax Credit
I’m a resident of Québec
If you’re a resident of Québec and you’d like to claim a deduction for your exploration and development expenses, you’ll need to complete Schedule N: Adjustment of Investment Expenses. Your expenses will be shown on one of the following slips:
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
- 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 Statement of exploration and development expenses and depletion allowance (T1229) then click Continue.
- When you arrive at the page for your T1229, enter your information into the tax software.