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.
- 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 Capital gains deduction on resource property (TP-726.20.2-V), then click Continue.
- 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.