Lines 413 and 414 – Labour-sponsored funds tax credit
You may be able to claim a credit if you became the first registered holder to acquire, or irrevocably subscribe to and pay for, an approved share of the capital stock of a prescribed labour-sponsored venture capital corporation (LSVCC) from January 1, 2015, to February 29, 2016.
If you became the first registered holder of an approved share from January 1, 2015, to March 2, 2015, and did not claim the whole credit for it on your 2014 tax return, you can claim the unused part on your 2015 tax return.
If you became the first registered holder of an approved share from January 1, 2016, to February 29, 2016, you can claim any part of the credit for that share on your tax return for 2015, and the unused part on your tax return for 2016.
If the first registered holder of the share is an RRSP for a spouse or common-law partner, the RRSP contributor or the annuitant (recipient) can claim this credit for that share.
If you bought shares after 2003 of a provincial or territorial registered LSVCC (that is not a federally registered LSVCC), you can only claim the federal-sponsored funds tax credit in respect of those shares if a provincial or territorial income tax credit is also available to be claimed for them.
RRSPs and the Labour-sponsored funds tax credit
Completing your tax return
Enter your net cost of your contributions to a labour-sponsored venture on line 413 of Schedule 1. Net cost is the amount you paid for shares, minus any government assistance (other than federal provincial tax credits) on the shares.
Claim the amount of the credit on line 414 of Schedule 1. For 2015, the allowable credit cannot be more than 10% of the net cost, to a maximum of $500 per year.
If you were a resident of Quebec on December 31, 2015, see the guide for your provincial tax return for Quebec.
Forms and publications
- Guide, General Income Tax and Benefit Guide
- Schedule 1, Federal Tax
- Form T5006, Statement of Registered Labour-Sponsored Venture Capital Corporation Class A Shares
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