Terra Tax Savings Calculator

Calculate your personal tax savings and rate of return.

Print

Calculator Inputs

Ontario
Individual
250,000
10,000
0
80
Taxable income is gross income (salary, bonus, pension or interest income, 50% of a capital gain etc.) less RRSP deductions, interest expenses, etc & exemptions. Investment income for a CCPC includes interest income, foreign dividend income, rental income & taxable capital gains.
* NAV on Redemption is an estimate of the future value of the investment (expressed as a percentage and may be changed), is not guaranteed and assumes a 50% capital gains inclusion rate. Budget 2024 announced the capital gains inclusion rate for an individual will be 50% on the first $250,000 of annual gains and 66.7% of annual gains over $250,000. The capital gains inclusion rate for corporations and trusts is increasing to 66.7% of annual capital gains. These measures would apply to capital gains realized on or after June 25, 2024. If realized capital losses are available to fully offset the capital gain, no capital gains tax is owing on redemption. Figures inputted are for illustration purposes only and may not be indicative of the actual NAV received on redemption or actual capital gains inclusion rate.
Cash Flow & Rate of Return Year 1
Investment		 Year 2
Rollover 1		 Years 3 - 5
Post Rollover
Investment - -
Annual Tax Savings 2
NAV on Redemption - -
Capital Gains Tax on Redemption3 - -
Cash Flow - $
Cumulative Return - $
Rate of Return - %

Rate of return for is calculated as the total Cumulative Return for divided by the Capital at Risk in year 1 for .

1 Rollover is targeted for June in the 2nd calendar year. 2, 3 See following tables.

2 Tax Savings Year 1
Investment		 Year 2
Rollover		 Years 3 - 5
Post Rollover
A. CEE & Other Deductions
B. Average Tax Rate 4
C. Tax Savings - CEE & Other ( A x B )
D. Tax Savings - METC 5, 6 -
E. Tax Savings - CMETC 5, 6 -
Annual Tax Savings ( C + D + E )

4 Average tax rate is the average rate over multiple income tax brackets & determines the value of CEE & Other deductions.

5 METC is the federal 15% Mineral Exploration Tax Credit; CMETC is the federal 30% Critical Mineral Exploration Tax Credit. Additional provincial tax credits or deductions available are not included above.

6 METC & CMETC are only available to individuals (except trusts) and taxable as income in year 2.

3 Capital Gains Tax on Redemption Year 2
Rollover
A. NAV on Redemption
B. Less: Eligible Capital Loss Carry Forward
C. Net Taxable Capital Gain ( A - B )
D. Tax Rate on Capital Gain (50% inclusion rate)
Capital Gains tax on Redemption ( C x D )

This tax calculator is of a general nature only and does not constitue an offer or solicitation, nor should it be construed to be legal or tax advice to any investor, and no representations with respect to the tax consequences to any investor are made. The information contained herein, while obtained from sources that are believed to be reliable, is not guaranteed as to accuracy or completeness. Your personal tax situation may be beyond the scope of this calculator and should not be relied upon without professional advice. The figures are not intended as a forecast of future events. Actual tax deductions and tax credits may be more or less. The calculations assume alternative minimum tax or corporate minimum tax does not apply. Tax rates and capital gains inclusion are also subject to change. The calculator reflects tax rates as of January 15, 2024. To ensure that your own circumstances have been properly considered and that action is taken based on the latest information available, you should obtain professional advice from a qualified tax and/or legal advisor before acting on any of the information in this presentation.

This offering is available only to qualified investors in Canada who must receive a Offering Memorandum prior to subscribing for Units. Investors should read and undestand the risk factors prior to making an investment. Terra Fund Management Ltd, and any related parties assume no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Each prospective investor should obtain independent advice from an expert tax advisor who is knowledgeable in the income tax considerations applicable to investing in flow-through limited partnerships based on the investor’s own personal situation.