,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,gift 6a ,*>;y (a ,residual ,9t]e/ 9
  ,r1l ,prop]ty or an ,equita# ,9t]e/ 9
  a ,tru/
,numb]3 ,,it-#bbf;,r
,date3 ,novemb] #bi1 #aiia
,ref];e3 ,subsec;ns #aaj.a7#a7 &
  #aah.a7#c7 7al sec;ns #dc & #gj1
  subsec;ns #aah.a7#a71 7#e7 & 7#f71 &
  subp>agraph #fi7#a77b77;ii7 (! ,act &
  ,"p ,,xxxv (! ,regul,ns7

               ,applic,n
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#bbf dat$ ,june #b1 #aige4



                                      #a
                ,summ>y              a#a
    
  ,? bullet9 4cusses ! require;ts t m/ 2
met = an 9t] vivos or te/a;t>y don,n (a
residual 9t]e/ 9 r1l prop]ty or an
equita# 9t]e/ 9 a tru/ 6qualify z a gift
= purposes (! ,act4 ,! bullet9 al -;ts
on ! valu,n (a residual or equita# 9t]e/
& provides a =mula 6calculate ! adju/$
co/ base (a residual or equita# 9t]e/ 9
respect (a capital prop]ty4

          ,4cus.n & ,9t]pret,n
    
#a4 ,a gift (a residual 9t]e/ 9 r1l
  prop]ty or an equita# 9t]e/ 9 a tru/
  6a regi/]$ *>;y or c]ta9 o!r
  organiz,ns 7describ$ 9 subsec;n
  #aaj.a7#a7 or #aah.a7#a77 may qualify
  z a deduc;n 9 -put+ taxa# 9come1 if
  donat$ 0a corpor,n1 or z a non-
  refunda# f$]al tax cr$it1 if donat$
  0an 9dividual4 ,subsec;n #aaj.a7#a7
  provides ! deduc;n = corpor,ns &
  subsec;n #aah.a7#c7 provides !      #b
              ,,it-#bbf;,r           b#a
  tax cr$it = 9dividuals4 ,prior 6#aihh1
  *>ita# gifts1 :e!r made 0a corpor,n or
  an 9dividual1 7 all[$ z a deduc;n 9
  -put+ ! taxa# 9come (! donor4
#b4 ,a "picul> don,n m/ qualify z a gift
  9 ord] =! provi.ns ( subsec;ns
  #aaj.a7#a7 & #aah.a7#c7 6apply4 ,=!
  purposes ( ^! provi.ns1 a gift is a
  volunt>y transf] ( r1l or p]sonal
  prop]ty )\t valua# 3sid],n4 ,"! m/ 2 a
  donor )! capac;y 6make ! gift & "! m/
  2 a donee 6rcv ! prop]ty donat$4 ,": !
  prop]ty donat$ 3si/s (a residual 9t]e/
--------------------------------------#b
  9 r1l prop]ty or an equita# 9t]e/ 9 a
  tru/1 ! ,de"p;t w 3sid] a gift 6h be5
  made if all (! require;ts li/$ 2l >e
  met4
  7a7 ,"! m/ 2 a transf] ( prop]ty
    volunt>ily giv5 ) no expect,n ( "r1
    privilege1 mat]ial b5efit or
    advantage 6! donor or a p]son
    designat$ 0! donor4
                                      #c
              ,,it-#bbf;,r           a#b
  7b7 ,! prop]ty m/ ve/ )! recipi5t
    organiz,n at ! "t ( transf]4 ,a gift
    is ve/$ if
    7;i7 ! p]son or p]sons 5titl$ 6!
      gift >e 9 exi/;e & >e asc]ta9$1
    7;ii7 ! size (! b5efici>ies' 9t]e/s
      >e asc]ta9$1 &
    7;iii7 any 3di;ns atta*$ 6! gift >e
      satisfi$4
  7c7 ,! transf] m/ 2 irrevoca#4
  7d7 ,x m/ 2 evid5t t ! recipi5t
    organiz,n w ev5tu,y rcv full [n]%ip
    & posses.n (! prop]ty transf]r$4
    ,once x is e/abli%$ t a gift has be5
    made1 ! value (! gift at ! "t (!
    transf] m/ 2 det]m9$ 2f x c 2 claim$
    = 9come tax purposes 7see #e 2l74
    ,al1 ! gift m/ 2 support$ 0an
    (ficial don,n receipt issu$ 9
    a3ord.e ) ,"p ,,xxxv (! ,regul,ns
    7ref] 6! curr5t v].n ( ,,it-#aaj1
    ,deducti# ,gifts & ,(ficial ,don,n
    ,receipts74
                                      #d
              ,,it-#bbf;,r           b#b
#c4 ,an equita# 9t]e/ 9 a tru/ is cr1t$
  ^u ! transf] ( any prop]ty 79clud+ r1l
  prop]ty7 6a tru/ )! require;t t !
  prop]ty 2 4tribut$ 6a b5efici>y at "s
  future date 7e4g4 :5 an 9come 9t]e/ (
  ano!r p]son 5ds74 ,": s* an 9t]e/ is
  cr1t$ =! b5efit (a *>;y1 t 9t]e/ may
  qualify z a gift =! purposes (
  subsec;n #aaj.a7#a7 or #aah.a7#c74

  ,a gift ( an equita# 9t]e/ cd 2 made
  "? a te/a;t>y tru/ or an 9t] vivos
  tru/4 ,= example1 assume t a tru/ is
  cr1t$ 0! w (a dec1s$ taxpay] 6hold
  prop]ty gift$ 0! dec1s$ 6a regi/]$
  *>;y4 ,! t]ms (! w require ! tru/ees
  6pay all (! 9come e>n$ 0! tru/ 6!
  taxpay]'s surviv+ sp\se &1 on ! d1? (!
  taxpay]'s sp\se1 6transf] ! prop]ty 6!
  regi/]$ *>;y4 ,nei ! sp\se nor any o!r
  p]son has ! p[] 65croa* on ! capital
  (! tru/4 ,9 ? case1 a te/a;t>y gift (
  an equita# 9t]e/ 9 a tru/ is 3sid]$ 6h
  be5 made &! taxpay] is deem$        #e
              ,,it-#bbf;,r           c#b
  0subsec;n #aah.a7#e7 6h made a gift (!
  9t]e/ 6! regi/]$
--------------------------------------#c
  *>;y 9 ! tax,n ye> 9 : ! taxpay] di$4
  ,on ! o!r h&1 an example ( an 9t]
  vivos gift ( an equita# 9t]e/ 9 a tru/
  is ": a taxpay] transf]s a prop]ty 6a
  tru/ &! tru/ee is 9/ruct$ 6pay all (!
  9come e>n$ 0! tru/ 6! taxpay] dur+ !
  taxpay]'s life"t &1 on ! d1? (!
  taxpay]1 6transf] ! prop]ty 6a regi/]$
  *>;y4 ,if all (! require;ts li/$ 9 #b
  abv 7 satisfi$ at ! "t (! transf] 6!
  tru/1 an 9t] vivos gift ( an equita#
  9t]e/ 9 a tru/ is 3sid]$ 6h be5 made
  at t "t4
#d4 ,9 ! case ( an equita# 9t]e/ 9 a
  tru/1 ! ,de"p;t 3sid]s a gift 6h be5
  made :5 ! transf] ( prop]ty 6! tru/
  has be5 -plet$ &! equita# 9t]e/ 9 !
  tru/ has ve/$ 9 ! *>;y4 ,": ! tru/
  prop]ty 3si/s ( p]sonal prop]ty s* z
  pa9t+s1 sculptures or o!r movea#
  >ticles1 ! loc,n or posses.n (!     #f
              ,,it-#bbf;,r           a#c
  tru/ prop]ty may1 2c ( xs nature1 2
  *ang$ ) relative ease4 ,9 ord]
  6satisfy ! require;ts ( #b7c7 & 7d7
  abv1 nec precau;ns m/ 2 tak5 65sure t
  ! *>;y's [n]%ip (! 9t]e/ is protect$
  until ! actual transf] & 4tribu;n (!
  prop]ty o3urs4
#e4 ,! me?od ( valu+ a residual 9t]e/ 9
  r1l prop]ty or an equita# 9t]e/ 9 a
  tru/1 :e!r x 2 =! purpose ( det]m9+ !
  am.t (a *>ita# don,n or o!r tax
  3sequ;es1 w v>y ac 6! type ( gift1 o!r
  9t]e/s 9 ! prop]ty or tru/ &! docu;t,n
  provid+ =! gift4 ,! g5]al approa* is
  6value ! v>i\s 9t]e/s tak+ 963sid],n !
  fair m>ket value (! prop]ty xf1 !
  curr5t 9t]e/ rates1 ! life expectancy
  ( any life t5ants1 & any o!r factors
  relevant 6! specific case4 ,9 ! case (
  prop]ty o!r ?an r1l prop]ty1 ! l;g] !
  p]iod 2f full [n]%ip (! prop]ty is
  pass$ 6! *>;y1 ! m di6icult x is
  6e/abli% xs value4
                                      #g
              ,,it-#bbf;,r           b#c
#f4 ,9 cases ": ! size (a residual or
  equita# 9t]e/ at ! "t (! don,n _c
  r1sonably 2 det]m9$1 s* z :5 a life
  t5ant or tru/ee has a "r 65croa* on !
  capital (! tru/1 no deduc;n or tax
  cr$it 9 respect (! don,n w 2 all[$4
#g4 ,a gift ( prop]ty t is capital
  prop]ty (! donor w norm,y give rise 6a
  capital ga9 or loss4 ,": ! prop]ty
  4pos$ ( is a residual 9t]e/ 9 r1l
  prop]ty1 ! "p 4posi;n rules 9 sec;n
  #dc require t a r1sona# por;n (!
  adju/$ co/
--------------------------------------#d
  base (! total prop]ty immly 2f !
  4posi;n m/ 2 attribut$ 6! residual
  9t]e/ 9 -put+ ! result+ capital ga9 or
  loss4 ,:5 ! value (! residual 9t]e/ &
  all o!r 9t]e/s at ! "t (! ve/+ (! gift
  h be5 det]m9$1 ! adju/$ co/ base
  7,,acb7 (! residual 9t]e/ c 2
  calculat$ z foll[s3

                                      #h
              ,,it-#bbf;,r           a#d
  ,fair ,m>ket ,value ( ,residual ,9t]e/
  divid$ 0,fair ,m>ket ,value ( ,all
  ,9t]e/s 9 ! ,prop]ty multipli$ 0,,acb
  ( ,total ,prop]ty equals ,,acb (
  ,residual ,9t]e/

#h4 ,z a g5]al rule1 ": a taxpay] 4poses
  (a capital prop]ty 6an 9t] vivos tru/
  =! b5efit (a *>;y1 ! taxpay] is deem$
  6h rcvd proce$s ( 4posi;n equal 6!
  fair m>ket value (! prop]ty pursuant
  6subp>agraph #fi7#a77b77;ii74 ,": !
  prop]ty is 4pos$ ( 6a te/a;t>y tru/1 !
  rules 9 sec;n #gj apply4 ,9 ei case1
  if ! fair m>ket value (! prop]ty at !
  "t ( 4posi;n exce$s xs adju/$ co/
  base1 ! taxpay] or ! taxpay]'s legal
  repres5tative1 z ! case may be1 w 2
  eligi# 6make ! elec;n provid$ = "u
  subsec;n #aah.a7#f74 ,? subsec;n
  provides rules all[+ = an elect$ am.t1
  n grt] ?an ! fair m>ket value & n less
  ?an ! adju/$ co/ base (! capital
                                      #i
              ,,it-#bbf;,r           b#d
  prop]ty1 6be 3sid]$ z bo? ! proce$s (
  4posi;n &! am.t (! gift4
#i4 ,= a4i;nal 9=m,n on *>ita# don,ns1
  ref] 6! curr5t v].ns (! foll[+
  bullet9s3
  ,,it-#aaa ,annuities ,pur*as$ f
    ,*>ita# ,organiz,ns
  ,,it-#bdd ,gifts ( life 9sur.e
    policies z *>ita# don,ns
  ,,it-#bhh ,gifts ( ,capital ,prop]ties
    6a ,*>;y & ,o!rs
  ,,it-#big ,gifts 9 ,k9d 6,*>;y & ,o!rs
  ,,it-#ejd ,visual ,>ti/s & ,writ]s
  









                                     #aj