You can use the TP-726.20.2-V form to calculate your capital gains deduction for any capital gains that resulted from the disposition (sale or transfer) 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
You can claim this deduction if you meet all of the following conditions:
- You’re a Canadian resident and lived in Canada throughout 2018, part of 2018 and throughout 2017, or you expect to be a resident throughout 2019
- At the end of 2018, the limit on your exploration expenses amount incurred in Québec was positive
- You’re reporting the capital gains no later than one year after the deadline for filing your 2018 tax return
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 2018 tax software:
Before you begin, make sure that you told us that you lived in Québec on December 31, 2018.
- On the PREPARE tab, click the IN THIS SECTION icon.
- In the Investments box, click the Add This Topic button.
- Click the PENSION PLANS AND INVESTMENTS icon.
- 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.