Manitoba Labour-Sponsored Venture Capital Tax Credit

Important: Manitoba’s 2018 budget has eliminated the labour-sponsored funds tax credit for shares bought after the first 60 days of 2019. The labour-sponsored funds tax credit for federally registered funds was eliminated effective 2017.

If you purchased approved shares from a labour-sponsored venture capital (LSVC) corporation in 2018 or within the first 60 days of 2019, you might be able to claim the Manitoba labour-sponsored venture capital tax credit.

With this non-refundable tax credit, you can claim up to $1,800 of your investments made in an LSVC corporation that was registered after June 30, 2006. If you invested in an LSVC corporation registered before July 1, 2006, you can only claim up to $750 to reduce your provincial tax payable. The corporation you’ve invested in will issue you a T2C (MAN.) slip indicating the credit amount you can claim.

If you choose to print and mail in your return, make sure you include your T2C (MAN.) slip. If you’re filing your return electronically, keep your T2C (MAN.) slip with your records in case the Canada Revenue Agency (CRA) asks to see it later.

For more information on the Manitoba labour-sponsored venture capital tax credit, visit the CRA website.

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 Manitoba 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:

    DIY18_PENSION_EN.png

  4. Under the INVESTMENT INCOME heading, select the checkbox labelled Manitoba labour-sponsored funds tax credit, then click Continue

  5. When you arrive at the page for your Manitoba labour-sponsored funds tax credit, enter your information into the tax software.

Once you’ve completed this page, you’ll also need to enter the provincial tax credit amount shown on your T2C (MAN.) 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:

    DIY18_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 (MAN.) slip in the field labelled Provincial labour-sponsored funds tax credit.

 

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