Flow-Through Share Tax Savings Calculator

Use the calculator to estimate tax savings that could be realized with a Flow-Through investment.

One of the few remaining advanced tax planning strategies in Canada

Much like RRSPs, Flow-Through share investing allows the investor to deduct 100% of the investment against personal income in the year of investment. On termination of the Flow-Through LP, the investment is rolled into a designated mutual fund corporation. The investor may now sell the fund, where their taxable capital gain is limited to 50% of the proceeds.

An excellent wealth planning tool

In combination with the tax deferral achieved by the corporate class roll-over, an investor may also take advantage of any capital loss carry-forwards they have, which can be used to offset their capital gain.

Additional tax credits may apply

Depending on your province of residency, additional tax credits may be available that are not included in the calculator below.

Please be sure to consult with your Financial Advisor to determine if this type of investment is suitable for your objectives.

This calculation tool is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular investor, and no representations with respect to the tax consequences to any particular investor are made. There are many aspects of federal and income tax laws which may be relevant to any potential investor. Accordingly, each prospective investor should obtain independent advice from a tax advisor who is knowledgeable in the area of income tax law regarding the income tax considerations applicable to investing in flow-through funds based on the investor’s own particular circumstances.

The income tax considerations applicable to an investor will vary depending on a number of factors, including whether units of flow-through funds are characterized as capital property, the province or territory in which he or she resides, carries on business, or has a permanent establishment, the amount that would be his or her taxable income but for the interest in the flow-through fund, and the legal characterization of the investor as an individual, corporation, trust, or partnership.

Ninepoint Partners LP assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. The information should not be regarded by recipients as a substitute for the exercise of their own judgment or for the advice of legal and tax advisors.

The Fund is generally exposed to the following risks. See the prospectus of the Fund for a description of these risks: Speculative Investments; Sector Risks; Lack of Operating History of the Partnership; Changes in Net Asset Values; Valuation and Liquidity of Resource Issuers; Global Economic Downturn; Tax Related Risks; Risk Factors Specific to Québec Class Units; Lack of Liquidity of Units; Flow-Through Share Premiums; Reliance on the Manager and/or Sub-Advisor; Conflicts of Interest; Possibility that Limited Partners may Receive Illiquid Securities on Dissolution; Financial Resources of the General Partner; Transferability of the Units; Resale Restrictions on Portfolio Securities; Short Sales; Derivatives; Lack of Suitable Investments; Cybersecurity Risk; Possible Loss of Limited Liability; Loan Facility.

The figures shown are not a representation regarding the future value of Units. These figures are for illustrative purposes only and are not intended as a forecast of future events. There is no assurance that such results will in fact be realized.

The tax calculator is updated yearly, once the federal government releases new tax rates. The calculator currently utilizes 2023 tax rates.

You might also be interested...