Did you purchase shares from a qualifying venture capital fund in 2016 or within the first 60 days of 2017? If you did, and you received a Certificate NL VCTC, you’ll be able to claim the Newfoundland and Labrador (NL) venture capital tax credit. Remember, you must also be a resident of Newfoundland and Labrador to claim this tax credit.
With this non-refundable tax credit, you can claim up to lifetime maximum of $75,000 of your investments to help reduce your provincial tax payable. This means once you’ve claimed the full credit amount, you won’t be able to the claim this tax credit anymore. The Certificate NL VCTC you receive will show you the credit amount you can claim.
In the event your credit is more than your provincial tax payable, you can carry any unused amounts forward up to 7 years to claim on a future return. Refer to your notice of assessment (NOA) or reassessment to find out if you have any unused credits from a previous year.
If you choose to print and mail in your return, make sure to include your Certificate NL VCTC. If you’re filing your return electronically, keep your certificate with your records in case the Canada Revenue Agency (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 NEWFOUNDLAND AND LABRADOR 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 INVESTMENT INCOME heading, select the checkbox labelled NL venture capital tax credit, then click Continue.
- When you arrive at the page for your NL venture capital tax credit, enter your information into the tax software.