Line 224 - Exploration and development expenses

If you invested in a petroleum, natural gas, or mining venture in 2011, but did not participate actively, you can deduct your expenses on this line.

If you participated actively, deduct these expenses when calculating your income for line 135.

If you have any questions about these expenses, contact our Business Enquiries service.

If you have a tax shelter, see Tax shelters.

Completing Form T1229

Complete Form T1229, Statement of Resource Expenses and Depletion Allowance, using the information that the principals of the venture give you, such as T5, T101, T5013, or T5013A slips. Read the instructions on the backs of these slips.

Attach Form T1229 and your T5, T101, T5013, and T5013A slips to your paper return. If you do not have these slips, attach a statement that identifies you as a participant in the venture. The statement has to show your allocation (the number of units you own, the percentage assigned to you, or the ratio of your units to those of the whole partnership) and give the name and address of the fund.

Completing your tax return

Enter on line 224, your exploration and development expenses (including renounced resource expenses). Enter on line 232, your depletion allowances. The resource allowance is not deductible.

Forms and publications

• General Income Tax and Benefit Package - Guide, return and schedules
• Form T1229, Statement of Resource Expenses and Depletion Allowance
• IT-400, Exploration and Development Expenses - Meaning of Principal Business Corporation
• IT-400SR, Exploration and Development Expenses - Meaning of Principal Business Corporation

Related topics

• Lines 135 to 143 - Self-employment income
• Line 232 - Other deductions