Summary Policy

Date
September 3, 2003

Reference Number
CSP - D07

Key Words
Deemed disposition

Policy Statement

Under the Income Tax Act, where a taxpayer (i.e., an individual or corporation) disposes of property by way of a gift to a qualified donee, the taxpayer is deemed to have received proceeds of disposition equal to the fair market value of the property at the time of the gift.

References

• Disposition of Property, CSP - P19.
• Donor, CSP - D17.
• Fair Market Value, CSP - F02.
• Gift (donation), CSP - G01.
• Property, CSP - P05.
• Qualified Donee, CSP - Q01.
• Gifts and Income Tax, P113.
• Gifts of Capital Properties to Charity and Others, IT-288.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, subpara. 69(1)(b)(ii).