Did you purchase shares from a labour-sponsored venture capital (LSVC) corporation based in New Brunswick in 2016, or within the first 60 days of 2017? If you did, you might be able to claim the New Brunswick labour-sponsored venture capital fund tax credit.
With this non-refundable tax credit, you can claim up to $2,000 to help reduce your provincial income tax payable. The LSVC corporations you purchased shares from will issue you a NB-LSVC-1 certificate to let you know what you can claim. Remember, you need to hold these shares for at least 8 years or you’ll need to pay back your credit.
Keep in mind, if you purchased shares from a New Brunswick LSVC corporation, you can also claim the federal labour sponsored funds tax credit for your shares, but only if you can also claim the provincial tax credit for them.
Note: If you decide to print and mail-in your return to the Canada Revenue Agency (CRA), you’ll need to include your NB-LSVC-1 certificate. If you’re filing electronically keep this supporting document with your records in case the CRA asks to see it later.
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 NEW BRUNSWICK on December 31st, 2016.
- On the PREPARE tab, click the LET’S TALK ABOUT 2016.
- 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'll find yourself here:
- Under the INVESTMENT INCOME heading, select the checkbox labelled New Brunswick labour-sponsored venture capital fund tax credit, then click Continue.
- When you arrive at the page for the New Brunswick labour-sponsored venture capital fund tax credit, enter your information into the tax software.
Once you’ve completed this page, you’ll also need to enter the provincial tax credit amount shown on your NB-LSVC-1 certificate on the All other deductions page of H&R Block’s tax software. To do this:
- On the PREPARE tab, click the OTHER icon. You’ll find yourself here:
- Under the MISCELLANEOUS heading, select the checkbox labelled All other deductions, then click Continue.
- When you arrive at the all other deductions page, enter the provincial tax credit amount as shown on your paper NB-LSVC-1 certificate in the field labelled Provincial labour-sponsored funds tax credit.