EDE Flow-Through LP
Flow-Through Shares (FTS) allow the issuing corporation to pass on its expenses to its shareholders, effectively allowing the investors to reduce their taxable income. The FTS was intended to encourage the investing public to invest in natural resource companies that are in need of capital, in exchange of the reduced taxable income for the investors.
There are typically two types of FTS, defined by the type of expenses that the issuing corporations are passing onto the FTS investors. In the case of CEE (Canadian Exploration Expenses) FTS, the issuing corporations are passing on their exploration-related expenses to the FTS investors, and the amount invested in FTS are usually 100% tax deductible towards any income within the same tax year. In the case of CDE (Canadian Development Expenses) FTS, the issuing corporations are passing on their development-related expenses to the FTS investors, and typically 30% of the amount invested in FTS are tax deductible against income in the first year, with the remaining 70% deductible portion allocated over the next several years on a declining basis.
The EDE Flow Through LP is constructed by our investment team, investing in both CDE and CEE FTS, aiming to provide our investors with the highest possible risk to return characteristics.To learn more about the EDE Flow Through LP, visit the Canadian government website here, or download the brochure here.
There are typically two types of FTS, defined by the type of expenses that the issuing corporations are passing onto the FTS investors. In the case of CEE (Canadian Exploration Expenses) FTS, the issuing corporations are passing on their exploration-related expenses to the FTS investors, and the amount invested in FTS are usually 100% tax deductible towards any income within the same tax year. In the case of CDE (Canadian Development Expenses) FTS, the issuing corporations are passing on their development-related expenses to the FTS investors, and typically 30% of the amount invested in FTS are tax deductible against income in the first year, with the remaining 70% deductible portion allocated over the next several years on a declining basis.
The EDE Flow Through LP is constructed by our investment team, investing in both CDE and CEE FTS, aiming to provide our investors with the highest possible risk to return characteristics.To learn more about the EDE Flow Through LP, visit the Canadian government website here, or download the brochure here.