Flow-Through FundsHistorical

Advantages of Flow-Through Limited Partnerships

Potential for Capital Appreciation

• Such partnerships will primarily invest in growth-oriented oil and natural gas companies

Reduction of Current Taxable Income

• In the case of CEE investments, the amount is invested generally 100% tax deductible against any source of income in the year the investment is made.
• In the case of CDE investments, 30% of the investment is deductible against income in the year the investment is made and the remaining 70% is deductible on a declining balance basis in future years.

Take Advantage of Capital Loss Carry-Forwards

• Capital loss carry-forwards may be used to offset capital gains realized on disposal of the units.

Diversification

• An investment in units of such partnerships will offer exposure to the energy industry through a diversified portfolio of flow-through shares of public and private issuers on a tax-advantaged basis.

Risk Management

• An investor can manage his or her own risk exposure through the allocation of his or her investment between CDE and CEE units.

Tax Credit for Charitable Donation of Fund Shares

• A limited partner may choose to donate his or her fund shares to a registered charity under the Tax Act and then claim a tax deduction for the full value of such fund shares donated and avoid a taxable capital gain in such disposition.