,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,9COME ,TAX ,ACT
  ,GIFTS ( ,CAPITAL ,PROP]TIES 6A ,*>;Y
  & ,O!RS
,NUMB]3 ,,IT-#BHH;,R#B
,DATE3 ,JANU>Y #AF1 #AIIE
,REF];E3 ,SUBSEC;NS #AAJ.A7#C7 &
  #AAH.A7#F7 7AL SUBSEC;NS #AC7#A71
  #BJ7#AF71 #AAJ.A7#A71 #AAH.A7#A71
  #AAH.A7#D7 & #AAH.A7#G71 P>AGRAPHS
  #FI7#A77B7 & #GJ7#E77A7 (! ,9COME ,TAX
  ,ACT & SEC;NS #CEJA & #CEJD (! ,9COME
  ,TAX ,REGUL,NS7

               ,APPLIC,N
    
  ,? BULLET9 C.ELS & REPLACES ,9T]PRET,N
,BULLET9 ,,IT-#BHH;,R1 DAT$ ,MAY #CJ1
#AIHH4
                                      #A
                ,SUMM>Y              A#A
    
  ,? BULLET9 4CUSSES A DESIGN,N T IS
AVAILA# 6A TAXPAY] 7A DONOR7 :O MAKES A
GIFT ( CAPITAL PROP]TY 6A REGI/]$ *>;Y
OR C]TA9 O!R 5TITIES4 ,IF ! FAIR M>KET
VALUE (! GIFT$ PROP]TY IS GRT] ?AN XS
ADJU/$ CO/ BASE1 ? DESIGN,N ALL[S !
DONOR 6REDUCE ! CAPITAL GA9 T WD O!RWISE
RESULT4 ,! DONOR MAY REDUCE ! CAPITAL
GA9 0DESIGNAT+ AN AM.T T IS LESS ?AN !
PROP]TY'S FAIR M>KET VALUE 7B N LESS ?AN
XS ADJU/$ CO/ BASE7 6BE ! PROCE$S (
4POSI;N4 ,? DESIGNAT$ AM.T IS AL DEEM$
6BE ! FAIR M>KET VALUE (! GIFT =
PURPOSES (! DEDUC;N OR TAX CR$IT =
*>ITA# GIFTS4 ,C]TA9 GIFTS 0A NON-
RESID5T TAXPAY] ( R1L PROP]TY SITUAT$ 9
,CANADA 6A PRESCRIB$ DONEE C AL QUALIFY
= ? DESIGN,N4 ,! AVAILABIL;Y ( ?
DESIGN,N 6GIFTS ( CAPITAL PROP]TY
0>TI/S1 AU?ORS & -POS]S IS AL BRIEFLY
4CUSS$4 ,9 A4I;N1 ! BULLET9 3TA9S A
-PREH5SIVE EXAMPLE ( S* A DESIGN,N4
                                      #B
          ,4CUS.N & ,9T]PRET,N       B#A
       ,DESIGN,N 6REDUCE CAPITAL
           GA9 ON C]TA9 GIFTS
    
#A4 ,G5],Y1 A TAXPAY] :O 4POSES (A
  CAPITAL PROP]TY 0WAY ( GIFT1 OR AN
  9DIVIDUAL DEEM$ 6H 4POS$ (A CAPITAL
  PROP]TY IMMLY 2F D1?1 IS DEEM$ 6H RCVD
  PROCE$S ( 4POSI;N EQUAL 6! FAIR M>KET
  VALUE 7,,FMV7 (! PROP]TY AT T "T1 "U
  P>AGRAPHS #FI7#A77B7 & #GJ7#E77A7
  RESPECTIVELY4 ,IF ! ,,FMV (! PROP]TY
  EXCE$S XS ADJU/$ CO/ BASE 7,,ACB71 !
  TAXPAY] W R1LIZE A CAPITAL GA9 Z A
  RESULT ( S* A 4POSI;N4 ,H["E1 SUBSEC;N
  #AAH.A7#F7 PROVIDES =A DESIGN,N T C
  REDUCE A CAPITAL GA9 T WD O!RWISE
  RESULT F ! APPLIC,N (! DEEM$ 4POSI;N
  RULES 9 P>AGRAPHS #FI7#A77B7 &
  #GJ7#E77A7 :5 AN 9DIVIDUAL MAKES A
  GIFT OR 2QUE/ 7GIFT7 (A CAPITAL
  PROP]TY TO3
  7A7 A REGI/]$ *>;Y2
  
                                      #C
             ,,IT-#BHH;,R#B          C#A
  7B7 ,H] ,MAJE/Y 9 "R ( ,CANADA OR A
    PROV9CE1 9CLUD+ AN AG5T (! ,CR[N2
  7C7 A REGI/]$ ,CANADIAN AMATEUR
    A?LETIC ASSOCI,N2
  7D7 A ,CANADIAN MUNICIPAL;Y2
  7E7 A REGI/]$ N,NAL >TS S]VICE
    ORGANIZ,N2 OR
  7F7 ANY O!R RECIPI5T DESCRIB$ 9 !
    DEF9I;N ( 8TOTAL *>ITA# GIFTS0 9
    SUBSEC;N #AAH.A7#A74
  
  ,9 A4I;N1 A DESIGN,N C ONLY 2 MADE IF
  ! ,,FMV (! CAPITAL PROP]TY GIFT$ IS
  GRT] ?AN XS ,,ACB4

  ,SUBSEC;N #AAJ.A7#C7 PROVIDES =A
  SIMIL> DESIGN,N T C REDUCE ! CAPITAL
  GA9 T WD O!RWISE RESULT :5 A CORPOR,N
  MAKES A GIFT ( CAPITAL PROP]TY 6^!
  SAME TYPES ( RECIPI5T &! ,,FMV (!
  CAPITAL PROP]TY GIFT$ IS GRT] ?AN XS
  ,,ACB4

                                      #D
            ,DESIGNAT$ AM.T          D#A
    
#B4 ,SUBSEC;NS #AAJ.A7#C7 & #AAH.A7#F7
  ALL[ A TAXPAY] :O MAKES A QUALIFY+
  GIFT ( CAPITAL PROP]TY 7OR1 IF
  APPLICA#1 ! TAXPAY]'S LEGAL
  REPRES5TATIVE7 6DESIGNATE A VALUE =!
  GIFT4 ,! DESIGNAT$ AM.T M/ 2 )9 !
  FOLL[+ LIMITS3
  7A7 X _C 2 M ?AN ! ,,FMV (! PROP]TY AT
    ! "T ! GIFT IS MADE2 &
  7B7 X _C 2 LESS ?AN ! ,,ACB (!
    PROP]TY4
  
  ,! DESIGNAT$ AM.T IS DEEM$ 6BE !
  PROCE$S ( 4POSI;N (! PROP]TY4 ,X IS AL
  DEEM$ 6BE ! ,,FMV (! GIFT MADE 0!
  TAXPAY] =! PURPOSES ( DET]M9+ ! AM.T
  (! DEDUC;N OR TAX CR$IT "U SUBSEC;N
  #AAJ.A7#A7 OR #AAH.A7#A74




                                      #E
            ,FIL+ REQUIRE;T          E#A
    
#C4 ,A DESIGN,N "U SUBSEC;N #AAJ.A7#C7
  OR #AAH.A7#F7 M/ 2 MADE 9 ! CORPOR,N'S
  OR 9DIVIDUAL'S 9COME TAX RETURN =! YE>
  9 : ! GIFT IS MADE4 ,9 A4I;N1 ! GIFT
  M/ 2 PROV5 0FIL+ AN (FICIAL RECEIPT
  3TA9+ ! 9=M,N REQUIR$ 0SEC;N #CEJA (!
  ,REGUL,NS4 ,EV5 9 ^? CASES ": AN
  9DIVIDUAL FILES AN 9COME TAX RETURN
  ELECTRONIC,Y1 A DESIGN,N IS REQUIR$ 9
  WRIT+ & M/ 2 SUBMITT$1 AL;G ) AN
  (FICIAL RECEIPT1 6,REV5UE ,CANADA4

    ,RECAPTURE ( CAPITAL CO/ ALL[.E
    
#D4 ,IF A TAXPAY] GIFTS A CAPITAL
  PROP]TY T IS DEPRECIA# PROP]TY1 !
  RECAPTURE PROVI.NS ( SUBSEC;N #AC7#A71
  OR ! T]M9AL LOSS PROVI.NS ( SUBSEC;N
  #BJ7#AF71 MAY APPLY 7SEE EXAMPLE 9 #H
  2L74 ,= A4I;NAL 9=M,N ON ^!


                                      #F
             ,,IT-#BHH;,R#B           #B
  TOPICS1 SEE ! CURR5T V].N ( ,9T]PRET,N
  ,BULLET9 ,,IT-#DGH1 ,CAPITAL CO/
  ALL[.E--,RECAPTURE & T]M9AL LOSS4

            ,_C CR1TE A LOSS
    
#E4 ,Z 4CUSS$ 9 #A ABV1 A DESIGN,N "U
  SUBSEC;NS #AAJ.A7#C7 OR #AAH.A7#F7 C
  ONLY 2 MADE IF ! ,,FMV (! CAPITAL
  PROP]TY GIFT$ IS M ?AN XS ,,ACB &1 Z
  4CUSS$ 9 #B ABV1 ! DESIGNAT$ AM.T _C 2
  LESS ?AN ! ,,ACB (! PROP]TY4 ,ACLY1 A
  TAXPAY] _C CR1TE A CAPITAL LOSS 0MAK+
  S* A DESIGN,N 7ASSUM+ T "! >E NO
  \TLAYS & EXP5SES RELAT$ 6! 4POSI;N74
  ,H["E1 IF ! ,,FMV (A NON-DEPRECIA#
  CAPITAL PROP]TY IS LESS ?AN XS ,,ACB1
  A CAPITAL LOSS C 2 9CURR$ ON A GIFT (!
  PROP]TY 2C (! OP],N (! DEEM$ 4POSI;N
  RULES 9 P>AGRAPHS #FI7#A77B7 OR
  #GJ7#E77A74


                                      #G
        ,GIFTS 0NON-RESID5TS 6A      A#B
            PRESCRIB$ DONEE
    
#F4 ,A CORPOR,N N RESID5T 9 ,CANADA & AN
  9DIVIDUAL :O IS A NON-RESID5T MAY AL
  MAKE A DESIGN,N "U SUBSEC;N #AAJ.A7#C7
  OR #AAH.A7#F74 ,H["E1 ^! NON-RESID5TS
  MAY ONLY MAKE S* A DESIGN,N IF3
  7A7 ! GIFT IS R1L PROP]TY SITUAT$ 9
    ,CANADA2
  7B7 ! GIFT IS MADE 6A 8PRESCRIB$
    DONEE0 LI/$ 9 SEC;N #CEJD (!
    ,REGUL,NS2 &
  7C7 ! PRESCRIB$ DONEE PROVIDES AN
    "UTAK+ 9 A SATISFACTORY =M 6! E6ECT
    T S* PROP]TY W 2 HELD = USE 9 !
    PUBLIC 9T]E/4
  
  ,! ,NATURE ,3S]VANCY1 A ,UNIT$ ,/ATES
  *>;Y1 IS ! ONLY PRESCRIB$ DONEE Z (!
  DATE ( ? BULLET94



                                      #H
        ,DON,NS 0>TI/S1 AU?ORS &     B#B
                 -POS]S
    
#G4 ,:5 AN >TI/1 AU?OR OR -POS] CR1TES A
  "W ( >T1 LIT]>Y MANUSCRIPT OR MUSICAL
  -POSI;N )! 9T5;N ( SELL+ X1 B LAT]
  DONATES X 6ANO!R P]SON1 ! DON,N IS
  3SID]$ 6BE A 4POSI;N ( PROP]TY F
  9V5TORY4 ,H["E1 ! DON,N 0AN >TI/1
  AU?OR OR -POS] ( C]TA9 O!R TYPES (
  PROP]TY 7E4G4 DI>IES OR CORRESPOND;E7
  IS 3SID]$ 6BE A 4POSI;N ( CAPITAL
  PROP]TY4 ,SIMIL>LY1 ! DON,N 0AN AU?OR
  OR -POS] ( ORIG9AL MANUSCRIPTS OR
  MUSICAL -POSI;NS1 LRS1 MEMOR&A OR
  SIMIL> PAP]S IS G5],Y 3SID]$ 6BE A
  4POSI;N ( CAPITAL PROP]TY1 S9CE X IS N
  USU,Y ! BUSI;S ( AU?ORS OR -POS]S
  6SELL S* ORIG9AL DOCU;TS4 ,DON,NS (
  PROP]TY T >E 3SID]$ 6BE 4POSI;NS (
  CAPITAL PROP]TY >E SUBJECT 6! SAME
  G5]AL PROVI.NS \TL9$ 9 #A 6#E ABV4
  ,DON,NS T >E 4POSI;NS ( PROP]TY F
  9V5TORY >E N SUBJECT 6^! PROVI.NS B
  MAY 2 SUBJECT 6! PROVI.NS (         #I
             ,,IT-#BHH;,R#B          C#B
  SUBSEC;N #AAH.A7#G71 : >E 4CUSS$ 9
  ,9T]PRET,N ,BULLET9 ,,IT-#EJD1 ,VISUAL
  ,>TI/S & ,WRIT]S4

                ,EXAMPLE
    
#H4 ,! FOLL[+ EXAMPLE ILLU/RATES ! 9COME
  TAX 3SEQU;ES (A DESIGN,N "U SUBSEC;N
  #AAH.A7#F7 =A DON,N (A BUILD+ 0AN
  9DIVIDUAL 6A REGI/]$ *>;Y4

               ,ASSUMP;NS
    
--,,FMV ( BUILD+ """"" 4#AJJ1JJJ
--,,ACB & CAPITAL CO/
  ( BUILD+ """""""""""" 4#DJ1JJJ
--,UNDEPRECIAT$ CAPITAL
  CO/ ( CLASS """"""""" 4#AG1EJJ
--,AM.T DESIGNAT$ "U
  SUBSEC;N #AAH.A7#F7   4#EJ1JJJ
--,O!R 9COME (
  9DIVIDUAL """""""""" 4#ABJ1JJJ

                                     #AJ
            ,9COME CALCUL,N          D#B
    
,RECAPTURE ( CAPITAL CO/ ALL[.E
  74#DJ1JJJ M9US 4#AG1EJJ7 """" 4#BB1EJJ
,TAXA# CAPITAL GA9 7#GE@3P
  MULTIPLI$ BY 74#EJ1JJJ
  M9US 4#DJ1JJJ77 """""""""""""" 4#G1EJJ
,O!R 9COME ( 9DIVIDUAL """"""" 4#ABJ1JJJ
,NET 9COME ( 9DIVIDUAL """"""" 4#AEJ1JJJ

          ,AM.T ( *>ITA# GIFT
    
  ,"U SUBSEC;N #AAH.A7#A71 ! AM.T (!
  *>ITA# GIFT T IS US$ 9 DET]M9+ ! TOTAL
  GIFTS =! PURPOSE ( CALCULAT+ ! NON-
  REFUNDA# *>ITA# TAX CR$IT =! YE> IS !
  LESS] (3
  7A7 ! 9DIVIDUAL'S
    TOTAL *>ITA#
    GIFTS =! YE> 7IN
    ? EXAMPLE1 !
    DESIGNAT$ AM.T7 "" 4#EJ1JJJ
  &
  
                                     #AA
             ,,IT-#BHH;,R#B          E#B
  7B7 #BJ@3P ( NET
    9COME 7#BJ@3P
    MULTIPLI$
    04#AEJ1JJJ7 """""" 4#CJ1JJJ 4#CJ1JJJ
  
  ,! AM.T (! *>ITA# GIFT T IS N US$
  6CALCULATE ! *>ITA# TAX CR$IT 9 ! YE>
  MAY 2 C>RI$ =W>D 6ANY (! IMMLY FOLL[+
  FIVE TAX,N YE>S4 ,H["E1 IF ! 9DIVIDUAL
  IS DEC1S$1 ANY GIFT MADE 0! 9DIVIDUAL
  9 ! YE> ( D1? IS DEEM$1 "U SUBSEC;N
  #AAH.A7#D71 6BE A GIFT MADE 9 ! IMMLY
  PREC$+ TAX,N YE>1 =! AM.T (! GIFT = :
  A TAX CR$IT IS N CLAIM$ 9 ! TAX,N YE>
  9 : ! 9DIVIDUAL DIES4

  ,IF Y H ANY -;TS AB ? BULLET91 PL1SE
S5D !M TO3
  ,DIRECTOR1 ,TE*NICAL ,PUBLIC,NS
    ,DIVI.N
  ,POLICY & ,LEGISL,N ,BRAN*
  ,REV5UE ,CANADA
  #HGE ,H]ON ,ROAD
  ,OTTAWA ,,ON ,K#A;,A #J;,L#H       #AB
         ,EXPLAN,N ( ,*ANGES =        #C
          ,9T]PRET,N ,BULLET9
             ,,IT-#BHH;,R#B
    ,GIFTS ( ,CAPITAL ,PROP]TIES 6A
             ,*>;Y & ,O!RS
               ,9TRODUC;N
    
  ,! PURPOSE (! ,EXPLAN,N ( ,*ANGES IS
6GIVE ! R1SONS =! REVI.NS 6AN 9T]PRET,N
BULLET94 ,X \TL9ES REVI.NS T H BE5 MADE
Z A RESULT ( *ANGES 6! LAW1 Z WELL Z
*ANGES REFLECT+ NEW OR REVIS$ DE"P;TAL
9T]PRET,NS4

                ,OV]VIEW
    
  ,9T]PRET,N ,BULLET9 ,,IT-#BHH;,R#B
DESCRIBES ! DESIGN,NS T ALL[ A CORPOR,N
OR AN 9DIVIDUAL 6REDUCE OR ELIM9ATE A
CAPITAL GA9 T WD O!RWISE RESULT F A GIFT
( CAPITAL PROP]TY 6A REGI/]$ *>;Y OR
C]TA9 O!R 5TITIES4 ,? REVI.N 0 "UTAK5
6REFLECT ! #AIHH ,TAX ,RE=M AM5D;TS T
REPLAC$ ! TAX DEDUC;N = GIFTS
09DIVIDUALS )A TAX CR$IT4 ,O!R       #AC
             ,,IT-#BHH;,R#B          A#C
REVI.NS H AL BE5 MADE 6IMPROVE !
R1DABIL;Y (! BULLET94 ,? REVI.N AL TAKES
96A3.T ! AM5D;TS 6SUBSEC;N #AAJ.A7#C7 &
#AAH.A7#F7 3TA9$ 9 ,S4,C4 #AIIC1 C4 #BD
7=M] ,BILL ;,C-#IB74

      ,LEGISLATIVE & ,O!R ,*ANGES
    
  ,NEW P>AGRAPH #A 7A POR;N ( =M]
P>AGRAPH #A7 EXPLA9S ! REQUIRE;TS 6BE
MET =A TAXPAY] 6MAKE A DESIGN,N "U
SUBSEC;N #AAJ.A7#C7 OR #AAH.A7#F74
  ,NEW P>AGRAPH #B REPLACES ! -;TS 9 =M]
P>AGRAPH #D 3C]N+ ! DESIGNAT$ AM.T4
  ,NEW P>AGRAPH #C \TL9ES ! FIL+
REQUIRE;TS1 9CLUD+ ^? = ELECTRONIC FIL+1
=A DESIGN,N "U SUBSEC;N #AAJ.A7#C7 OR
#AAH.A7#F74
  ,NEW P>AGRAPH #D IS BAS$ ON ! LA/
S5T;E ( =M] P>AGRAPH #A4 ,X AL]TS R1D]S
6! POSSIBIL;Y ( RECAPTURE ( CAPITAL CO/
ALL[.E1 OR A T]M9AL LOSS1 :5 A GIFT (
DEPRECIA# PROP]TY IS MADE4
                                     #AD
             ,,IT-#BHH;,R#B          B#C
  ,NEW P>AGRAPH #G REPLACES & UPDATES !
-;T>Y 9 =M] P>AGRAPH #E 3C]N+ DON,NS
0>TI/S1 AU?ORS & -POS]S4 ,=M] P>AGRAPH
#F ON DON,NS ( >TI/S' 9V5TORY HAS BE5
DELET$ 2C T TOPIC IS FULLY 4CUSS$ 9
,9T]PRET,N ,BULLET9 ,,IT-#EJD1 ,VISUAL
>TI/S & WRIT]S4
  ,NEW P>AGRAPH #H 3TA9S AN EXAMPLE
7=M]LY 9 P>AGRAPH #D7 (! APPLIC,N ( ?
PROVI.N 6AN 9DIVIDUAL4 ,! EXAMPLE HAS
BE5 UPDAT$ 6REFLECT CURR5T LAW1 9CLUD+ !
PRES5T 9COME 9CLU.N RATE = CAPITAL GA9S4
  ,"?\T ! NEW BULLET9 WE H *ANG$ "S (!
^W+ &! ORD] ( "S (! P>AGRAPHS 6IMPROVE
R1DABIL;Y )\T ALT]+ ! SUB/.E ( :AT 0 SD
9 ! PREVI\S BULLET94







                                     #AE