RE:RE:RE:RE:RE:RE:RE:RE:RE:Ouch..You are referring to flow-thru shares
You pay a higher price for the share to reflect the tax benefit you receive. But when you sell flow-through shares, you pay tax on the total sale price. This is because you were able to claim the full amount of your purchase as a tax deduction. To take advantage of the tax deductions and possible tax credit you have to hold the shares for at least 18 to 24 months.
Extremely common, most pp in the mining industry are done this way. Talk to your advisor great way to reduce your marginal tax rate.