TP-726.20.2-V: Capital gains deduction on resource property
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 2024, part of 2024 and throughout 2023, or you expect to be a resident throughout 2025
- At the end of 2024, 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 2024 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.
Follow these steps in H&R Block’s 2024 tax software:
Before you begin, make sure that you told us that you lived in Québec on December 31, 2024.
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On the left navigation menu, under the Credits & deductions tab, click Tax Topics.
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Select the Investment income & expenses checkbox.
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At the bottom of the page, click Add selected topics to my return.
- 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.