The entire amount invested in a Cordillera Minerals Flow-Through Limited Partnership may be tax deductible in the year purchased (subject to certain assumptions, outlined in the Offering Memorandum). When the Flow-Through Limited Partnership terminates, the shares are taxable as capital gains when the Investor decides to sell the shares or contribute the shares into an RRSP for additional tax savings. This means you would only pay taxes on half of the total amount at your marginal tax rate (please note that marginal tax rates differ by province).
Please see the illustration provided below for potential tax benefits for investors in BC, AB, SK, MB & ON with regards to a $25,000 investment example, based upon the following assumptions:
- The Limited Partnership invests 70% of its available capital in BC-based junior mineral resource companies.
- The investors (Limited Partner) are taxed at the highest marginal tax rate in each province they reside in, IE: for a BC resident (53.50%)
- he net tax benefits and tax credits are potentially realized as per example below;