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Ecologically Sensitive Land
Did you know individuals and corporations can donate ecologically sensitive lands, related easements, covenants and servitudes to a charity or qualified donee for a tax credit? Not only will you receive a full tax credit, but you won't pay tax on the capital gain either, as long as you donate to the right organization.
Under proposed changes in 2000, that could include a Municipality or other government body! (not sure if that passed or not)
In 1995, income limit removed on tax credits
In1997, 25 per cent of capital cost allowance (CCA) recapture allowed - donated property included in net income limit
In 1997, new valuation method for easements
In 2000, reduced capital gains income inclusion by one-half ITA, S. 38(a.2)
and in 2010, we have a new incentive plan for foreign holders of Canadian land to encourage donation of land to Canada
Reduced Inclusion Rate for Capital Gains on Donations of Ecologically Sensitive Land to Public Charities
Objective: This measure was introduced to enhance the incentives for the protection of Canada's ecologically sensitive land, including areas containing habitat for species at risk. (Budget 2000)
Since 2000, donations to approved conservation charities of ecologically sensitive land, or easements, covenants and servitudes on such land, have been eligible for special tax assistance. Under the Ecological Gifts Program, in addition to the Charitable Donations Tax Credit available to a donor of ecologically sensitive land to a conservation charity, there is a reduced inclusion rate for a capital gain that has accrued on the land in calculating the donor's income. The capital gains inclusion rate for donations of ecologically sensitive land made on or after May 2, 2006, is zero. For donations made before May 2, 2006, the capital gain that accrued on the ecologically sensitive land was included in income at one-half the standard capital gains inclusion rate (i.e. 25 per cent).
A parallel measure applies to corporations.
Non-Taxation of Capital Gains on Donations of Cultural Property
Objective: This provision encourages the donation to designated institutions (such as museums and art galleries) of cultural property determined to be of outstanding significance to Canada's national heritage. (Budget 1998)
Certain objects certified by the Canadian Cultural Property Export Review Board as being of cultural importance to Canada are exempt from capital gains tax if donated to a designated museum or art gallery. Recipient organizations are required to hold the objects for a minimum of 10 years.
A parallel measure applies to corporations.
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