TP-726.20.2-V: Capital gains deduction on resource property

If you’re a Canadian resident*, you can use form TP-726.20.2-V to calculate your capital gains deduction for any capital gains that resulted from the disposition of a resource property. Resource properties can include:

  • Flow-through shares
  • An interest in a partnership that invested in flow-through shares or
  • Resource expenses that you paid after May 14, 1992

For more information, check out the “Capital gains deduction on resource property” section of Revenu Québec’s guide, Capital Gains and Losses.

* For the purposes of the capital gains deduction, Revenu Québec considers you to be a Canadian resident if you lived in Canada for part of 2016 and throughout 2015 or you expect to be a resident throughout 2017.

Even if you realized a capital gain on one or more of the resource properties listed above, you can’t claim the capital gains deduction if:

  • You acquired your flow-through shares or partnership interest before May 15, 1992 or between June 13, 2003 and March 30, 2004 unless they were issued following the application for a receipt of a final prospectus (or for an exemption from filing a prospectus) made before June 13, 2003.
  • If the resource property you disposed of was also a qualified farm or fishing property or small business corporation shares, you can’t claim a capital gains deduction on resource property for that property unless you’ve already used up the capital gains deduction on qualified property.

 

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 QUÉBEC on December 31, 2016.

  1. On the PREPARE tab, click the LET’S TALK ABOUT 2016 icon.

  2. Select the checkbox labelled I had investments and/or investment income, or I bought and/or sold property.

  3. Click the PENSION PLANS AND INVESTMENTS icon. You will find yourself here:



  4. Under the RESOURCE INCOME AND CREDITS heading, select the checkbox labelled Capital gains deduction on resource property (TP-726.20.2-V), then click Continue.

  5. When you arrive at the page for Capital gains deduction on resource property (TP-726.20.2-V), enter your information into the tax software.

 

 

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