Saskatchewan Labour-Sponsored Venture Capital Corporation Tax Credit

Important: Effective 2017, you can no longer claim the labour-sponsored funds tax credit for a solely federally registered fund.

If you purchased provincially registered shares from a labour-sponsored venture capital (LSVC) corporation in 2018 or within the first 60 days of 2019, 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 $875 for your investments (17.5% 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: These shares can’t be used to claim any other tax credit or deduction, except for an RRSP deduction.

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 2018 tax software:

Before you begin, make sure you told us you lived in SASKATCHEWAN on December 31, 2018.

  1. Under the PREPARE tab, click the IN THIS SECTION icon.

  2. In the Investments box, click the Add This Topic button.
     
  3. Click the PENSION PLANS AND INVESTMENTS icon. You'll find yourself here:

     DIY17_PENSION_EN.png

  4.  Under the INVESTMENT INCOME heading, select the checkbox labelled Saskatchewan labour-sponsored venture capital tax credit, then click Continue.

  5. 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 tax credit amount shown on your T2C (Sask.) slip on the All other deductions page of H&R Block’s tax software, to claim the net cost of shares for your provincially registered fund. To do this:

  1. On the PREPARE tab, click the OTHER icon. You'll find yourself here:

    DIY17_OTHER_EN.png

  2. Under the MISCELLANEOUS heading, select the checkbox labelled All other deductions, then click Continue.

  3. 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.
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