Flow-through limited partnerships are excellent tax-planning tools and provide an opportunity for capital appreciation by investing in flow-through shares of Canadian resource companies. Flow-through shares are similar to common shares with added tax benefits for investors. Canadian resource companies can raise capital by issuing flow-through shares to investors and agree to use the proceeds to finance exploration and development activities. Tax deductions associated with these activities are renounced by the flow-through issuer and are allocated to investors who can then claim these deductions for tax purposes. The limited partnership allocates tax deductions to limited partners on a pro rata basis each year, which the limited partners can apply to their taxable income. Additional benefits of flow-through limited partnerships include portfolio diversification, professional management, access to investments and simplified administration.