Canada Revenue Agency
www.cra.gc.ca
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Appraisals for donations of gifts in kind
Generally, appraisals are central to the success of gifting arrangements, and may be produced after the tax shelter identification number has been issued.
We require that appraisals of gifts in kind be produced as they become available after we have issued the tax shelter identification number. The promoter has to include these reports when they file the Tax Shelter Information Return in the following year. If the number of appraisal reports is substantial (more than 10), we will accept a listing of the appraisers together with one completed and representative report from each appraiser. The list has to be prepared in the format provided on Form T5001, Application for Tax Shelter Identification Number and Undertaking to Keep Books and Records.
The appraiser should not be associated with either the donor or the institution receiving the donation. A FMV evaluation should be obtained from a dealer or appraiser who is active in the marketplace for the object donated.
Note
If an appraisal is needed and you think the FMV of the gift is $1,000 or less, a qualified staff member of the institution receiving the gift can appraise it.
If there is difficulty in finding an independent appraiser, or if it involves an unreasonable expense, qualified staff members of the institution accepting the gift can appraise it, even though the FMV might be more than $1,000.
