Charities and Not-for-Profit Measures
The Budget includes a number of welcome proposals for donors and
charities.
Capital Gains Exemption Extended to Gifts of Private Shares
and Real Estate
Over the past decade, the Federal Government has expanded the
capital gains exemption available when certain types of property,
particularly gifts of appreciated listed securities, are donated.
This year, the Budget proposes to exempt from capital gains tax
charitable gifts of the proceeds of disposition of private company
shares and real estate.
Donations of capital property to a registered charity (and
certain other entities), are generally eligible for donation tax
credits or deductions. However, unless an exemption applies, a
donor is subject to tax on donations of capital property on any
capital gains realized as a result of the transfer. This tax may be
sheltered by the tax credits or deductions arising from the gift,
but will reduce the overall tax benefit to the
