As a resident of Ontario, if you purchased flow-through shares from a mining exploration company, you might be able to claim the Ontario focused flow-through share tax credit by completing form T1221. This refundable tax credit is worth 5% of eligible Ontario exploration expenses and is meant to help reduce your provincial income tax payable. However, if you’re eligible for more than your tax payable, the rest might be paid to you as a refund once your return has been assessed.
Keep in mind, 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.
Where do I claim this?
Follow these steps in H&R Block’s 2017 tax software:
Before you begin, make sure you told us that you lived in Ontario on December 31, 2017.
- On 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’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.