How to limit the deduction of a resource pool
1 - 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:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-224-exploration-development-expenses.html
ID: 20200218075927DE.xml
Webpage: KPA390-20200218075927DE.htm
