Did you purchase flow-through shares from a mining exploration company in Ontario? If you did, you might be able to claim a refundable tax credit worth 5% of eligible Ontario exploration expenses by using form T1221. The Ontario focused flow-through share tax credit is meant to help reduce your income tax payable, but if you’re eligible for more than you owe, the rest can be paid to you as a refund once your return has been assessed.
Any credit you claim reduces the balance of your Cumulative Canadian Exploration Expense (CCEE) pool for next year. If the pool balance is negative after this deduction, you need to report the negative amount as income on your return.
To complete form T1221, you’ll need to use the amounts from information slips T101: Statement of resource expenses or T5013: Statement of partnership income.
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 told us that you lived in ONTARIO on December 31, 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 RESOURCE INCOME AND CREDITS heading, select the checkbox labelled Ontario focused flow-through share resource expenses for individuals (T1221), then click Continue.
- When you arrive at the page for the Ontario focused flow-through share resource expenses for individuals, enter your information into the tax software.