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Form T1221 is used to calculate the amount you can claim for the Ontario focused flow-through share tax credit. If you purchased shares from a mining exploration company, you may be eligible for the refundable tax credit of five percent of eligible Ontario exploration expenditures. The tax credit helps reduce your income tax payable. Any excess credit may be paid to you as a refund once your tax return is assessed.
Any credit you claim in the tax year reduces the balance of your Cumulative Canadian Exploration Expense (CCEE) pool in the year following the credit claim. If the pool balance is negative after this deduction, you must report the negative amount as income on of your return.
To complete form T1221, use the amounts on information slips T101: Statement of Resource Expenses or T5013: Statement of Partnership Income.
You must complete form T1221 if you purchased eligible flow-through shares from a mining exploration company in Ontario. In addition, you must be a resident of Ontario on December 31 of the year and have eligible Ontario exploration expenditures.
Follow these steps in H&R Block’s tax software to file your 2015 taxes:
Important: Before you begin, ensure that you told us that you lived in ONTARIO on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:
- Click the HOME tab.
- Click the ABOUT YOU icon, and click the Your residence link. You will find yourself here:
Once you have confirmed your residence location, complete form T1221 by following these steps:
- Click the PREPARE tab.
- Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
- Click the checkbox labelled I had investments.
- Scroll to the bottom of the page and click Continue.
- Click the RRSPS AND INVESTMENTS icon. You will find yourself here:
- Under the RESOURCE INCOME AND CREDITS heading, click the checkbox labelled Ontario focused flow-through share resource expenses for individuals (T1221).
- Click Continue.
When you arrive at the page for the Ontario focused flow-through share resource expenses for individuals (T1221) form, enter your information into the tax software.
- T1221: Ontario Focused Flow-Through Share Resource Expenses (Individuals) (CRA website)
- Ontario Focused Flow-Through Share Tax Credit (Ontario Ministry of Finance website)