How to limit the deduction of a resource pool1 - In the "Left side menu on the Interview tab", select the item "Interview setup".
2 - On the right-hand side of the screen, go to the "Investment income and expenses" group, check the box ''Partnership income, tax shelters (T5013, T101, T5003, T5004, T1CP)'' and click 'Next'' at the bottom of the page.
3 - Return to the ''Left site menu on the Interview tab" and select ''Partnerships income, tax shelters''.
4 - On the screen generated on the right, choose "Resource pool - Amount to carry forward to beginning of 2019".
5 - On the page "Resource expenditure pools", choose the type of resource account that applies to your situation.
6 - On the line ''Amount of Canadian exploration expenses pool at the beginning of the tax year'' choose the option that suits you in the drop down menu and enter the amount in the field to the right.
7 - If you want to reduce your deduction, enter the amount to be deducted in the field "Deduction from a particular resource pool".The amount entered will override the calculations based on the Canadian and/or foreign exploration and development expense pools. For tax shelters without resource pools, the amounts entered in the program will be carried over as a deduction on line 22400 or 23200 of the federal tax return and, for Quebec residents, to line 241 or 250 of the Quebec tax return.
If you do not wish to claim any deduction for the current taxation year, enter $0.00.
The program will generate Form T1229, "Statement of resource expenses and depletion allowance". If you want to view the form, click on the "Tax return" tab, choose the line "T1229 - Exploration and development".
For more information on resource expenses, please consult the following CRA link:
ID: 20200218075927DE.xml
Webpage: KPA390-20200218075927DE.htm