Use the calculator to estimate tax savings that could be realized with a Flow-Through investment.
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.
In combination with the tax deferral achieved by the roll-over into a mutual fund corporation, an investor may also take advantage of any capital loss carry-forwards they have, which can be used to offset their capital gains.
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 tax calculator is updated yearly, once the federal government releases new tax rates. The calculator currently utilizes 2024 tax rates.
