Ecological Gifts
The Ecological Gifts Program enables owners of property with sensitive
natural features to preserve wildlife habitat. Ecogifts, Ecological
Gifts, Donations of Ecologically Sensitive Land – these phrases
describe qualified charitable land donations that generate enhanced
income tax benefits. Donations of fee simple title and partial interests,
including conservation easements, are eligible. And, in many scenarios
the landowner can continue to hold title and/or live on the land.
Donors of
wild assets ensure permanent conservation and stewardship of natural
heritage. Past gifts have included wetlands, forests, prairies,
and other environmentally-sensitive areas.
Gift recipients include land trusts and other conservation charities,
and government agencies chosen by donors and approved by the federal
government. Donors of ecogifts receive a donation receipt for the
fair market value of the gift.
Ecogift tax advantages include:
- eliminated taxable capital gain on the disposition of the property
- no income limit for calculating the tax credit/deduction
- donation value certified by the Government of Canada
- tax liability for donees that do not protect the gifted land
Individuals or corporations can create a legacy and
contribute to Canada’s rich biodiversity.
Explore the site to learn if an ecogift is a good option for you
or your clients to protect nature.
Split-Receipting
In December, 2002, the Canada Revenue Agency (CRA) released Proposed
Guidelines on Split-Receipting (Income Tax Technical News
No. 26; www.cra-arc.gc.ca/
*). These guidelines related
to proposed amendments to the Income Tax Act.
Basically, donors can now receive an advantage (such as cash) and
a donation receipt for the difference between the value of the property
and the advantage received. Recipients and donors should refer to
their legal advisors and the draft guidelines on the CRA Web site
for details and restrictions. Also see Confirmation
that Ecogifts are Eligible for Split-Receipting. |
