Did you purchase eligible shares from a labour-sponsored venture capital (LSVC) corporation in 2016 or within the first 60 days of 2017? As long as you were at least 19, you might be able to claim the Nova Scotia labour-sponsored venture capital tax credit.
With this non-refundable credit, you can claim up to $2,000 to reduce your provincial tax payable. The corporation you invested in will issue you a NSLVS form which will show you the credit amount you can claim. Keep in mind, you’ll need to hold onto your shares for at least 8 years, or else you’ll need to pay back your credit.
Unfortunately, if your credit amount is more than your provincial tax payable, you won’t be able to carry forward the unused portion to a future year.
Also, if your spouse’s RRSP became the first registered holder of the share(s), either the contributor or the person designated as the annuitant can claim the credit for the share(s).
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 tell us that you lived in NOVA SCOTIA on December 31, 2016.
- On the PREPARE tab, click on 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 INVESTMENT INCOME heading, select the checkbox labelled Nova Scotia labour-sponsored venture capital tax credit, then click Continue.
- When you arrive at the page for the Nova Scotia labour-sponsored venture capital 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 NSLVS form 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 NSLVS form in the field labelled Provincial labour-sponsored funds tax credit.