Important: Effective 2017, you can no longer claim the federal labour-sponsored funds tax credit for your shares.
If you purchased provincially registered shares from a labour-sponsored venture capital (LSVC) corporation in 2017 or within the first 60 days of 2018, and you’re a resident of Saskatchewan, you might be able to claim the Saskatchewan labour-sponsored venture capital corporation tax credit.
With this non-refundable tax credit, you can claim up to $1,000 for your investments (20% on the first $5,000 you invest each year) to help reduce your provincial tax payable. The T2C (Sask.) slip that you receive from the Saskatchewan Ministry of Economy will indicate the credit amount you can claim on your return. You’ll need to hold onto your shares for at least 8 years or you’ll be asked to pay back your credit.
Note: For the 2018 and subsequent tax years, the Saskatchewan LSVC Tax Credit rate will be reduced from 20% to 17.5%.
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).
If you choose to print and mail in your return, make sure to include your T2C (Sask.) slip. If you’re filing your return electronically, keep your slip 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 2017 tax software:
Before you begin, make sure you told us you lived in Saskatchewan on December 31, 2017.
- Under the PREPARE tab, click the IN THIS SECTION icon.
- Under Investments (shares, securities, property, tax shelters, etc.) you bought or sold in 2017, click the Add This button.
- Click the PENSION PLANS AND INVESTMENTS icon. You will find yourself here:
- Under the INVESTMENT INCOME heading, select the checkbox labelled Saskatchewan labour-sponsored venture capital tax credit, then click Continue.
- When you arrive at the page for the Saskatchewan 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 T2C (Sask.) slip 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 T2C (Sask.) slip in the field labelled Provincial labour-sponsored funds tax credit.
