INVESTING IN A WCSB LIMITED PARTNERSHIP
CAN PROVIDE SIGNIFICANT TAX ADVANTAGES
|Investors may realize a tax deduction against income of up to 100% of the amount invested. Typically 30 - 40 % is claimed in the year which the investment was made with the balance deductible over the next few years. |
Investors can benefit by deferring income taxes. Any amount deferred may be reduced by cash distributions taxable as income, and any possible capital gains that are allocable to investors upon divestiture of the royalties.
WCSB Limited Partnership’s are specifically structured to provide investors with a combination of cash distributions and capital gains. As a result, a portion of income may potentially be converted into more favorably taxed capital gains payable in the future when the royalty asset is sold.
WCSB intends to invest 100% of available funds into development programs or to a lesser extent exploration activities. Therefore, the expected tax deduction for a limited partner in the year of purchase is approximately 40-50% of the amount invested with the balance deductible over the next four years. Because of these tax deductions, investors may be able to reduce their effective net ‘at-risk’ capital to approximately 54% to 56% of their original investment (please see the prospectus for the relevant partnership for a full description of these calculations).
The following information is provided as estimated tax deductions for WCSB Limited Partnership's. Please refer to your personal T5013A each year to review your final tax distribution summary.
- If you are a WCSB Investor please visit our Tax Reporting page for further information.
- If you would like to know how corporations can benefit from these tax advantages please visit our Corporate Planning page.
- To calculate your estimated tax deductions try our Tax Calculator.
For WCSB Tax Summary Reports (issue cost deductions, estimated and actual tax deductions etc.) Tax Factors and more please visit our Tax Reporting page.
View Tax Reporting Page
Visit our tax calculators page to calculate your tax deduction
on your WCSB investments or determine the ACB on your investment.
frequently asked questions
Why buy units of a WCSB Royalty Income Limited Partnership rather than publicly traded shares of energy companies?