Donations of Private Corporation Shares and Real Estate
Currently, taxpayers are exempt from capital gains tax for
charitable gifts of publicly listed securities and gifts of
ecologically sensitive land and cultural property. The Budget
proposes to provide an exemption from capital gains tax in respect
of certain dispositions of private corporation shares and real
estate occurring after 2016 provided the following conditions are
met:
-
Cash proceeds received from the disposition are donated to a
qualified donee within 30 days after the disposition, and
-
The disposition was to a purchaser that deals at arm's
length with both the donor and the qualified donee.
Therefore, it will be necessary for the donor to sell the
private company shares or real estate to an arm's length
purchaser and then donate the proceeds to a qualified donee, in
order to qualify for the proposed capital gains exemption.
Where only a portion of the proceeds of disposition are
