Limited Partnership units themselves are not eligible for contribution to RSP’s, TFSA’s or RESP’s. This said, mutual fund shares received, on a tax deferred basis, from a rollover of the flow through limited partnership assets to a mutual fund are RSP, TFSA and RESP eligible.
Upon contribution of such mutual fund shares to an RSP, TFSA or RESP, investors would trigger capital gains tax (50% of the rate of tax on income from employment, business or property) on the amount of the contribution. With respect to a contribution to an RSP, an investor would correspondingly receive a tax deduction for the amount of the contribution. Investors can benefit from the spread between the rate of tax applied to capital gains versus that applied to income from employment, business or property.
WHAT IS AN RSP?
A Retirement Savings Plan (RSP) is a tax-sheltered investment vehicle that provides you with a means of saving for retirement. Contributions to an RSP (by way of mutual fund shares or other) result in a tax deduction, and the income earned in the plan compounds on a tax-deferred basis. RSP-eligible investment options include fixed-income securities, equities, mutual funds, private company shares and more.
The information on this page is not to be considered tax advice. Maple Leaf reminds you that each individual’s tax and investment planning situation is unique and professional advice should always be received from a qualified tax and/or investment advisor. We strongly recommend that you consult with your tax advisor to determine the optimal use of these tax deductions as well as the impact to you, if any, with respect to either alternative minimum tax or cumulative net investment losses.
Others also read . . .
Download Now
Filing taxes for your Maple Leaf Funds investment is made simple with this
easy-to-follow guide.
Investors may deduct issue costs associated with a flow-through limited partnership over a number of years subsequent to the dissolution of the partnership.
View the Issue Cost Deductions in:
All Maple Leaf Short Duration Flow-Through Limited Partnerships roll into Maple Leaf Resource Class Fund Code: CDO100 (the “Mutual Fund”). If you sell shares of the Mutual Fund you will need to know the adjusted cost base (“ACB”) per Mutual Fund share to determine capital gains or losses for tax reporting purposes.