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 the purposes of the capital gains deduction, Revenu Québec considers you to be a Canadian resident if you lived in Canada for part of 2017 and throughout 2016 or you expect to be a resident throughout 2018.
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 2017 tax software:
Before you begin, make sure that you told us that you lived in Québec 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 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.