Donations Changes in the Spotlight

From a personal tax perspective, rules surrounding donations were a significant part of the tax changes introduced as part of the 2014 Federal Budget announced on February 11.

As part of the service we deliver to our clients and students, Knowledge Bureau published a comprehensive update of the Budget on announcement day, including the details of changes for donations. In summary, they are:

Donations at Death

For donations made in the deceased’s will after 2015, the donation will no longer be deemed to have been made by the individual immediately prior to their death but will be deemed to have been made by the estate at the time the donation is transferred to the qualified donee. The trustee may allocate the donation to

• The estate for the year in which the donation was made,
• An earlier taxation year of the estate, or
• The last two taxation years of the deceased.

Donations of Ecologically Sensitive Land

Credits for the donation of ecologically sensitive land made after February 11, 2014 may be carried forward up to ten years (five years for donations prior to that date).

Donations of Cultural Property

The current exemption to the rule that the value of a gift may not be greater than the cost of the gift to the donor will no longer apply to gifts of cultural property after February 11, 2014 if the gift is acquired as part of a tax shelter gifting arrangement.

These announcements were made in addition to the 2013 Budget announcement of the First Time Donor Tax Credit in effect from 2013 to 2017.

At Knowledge Bureau, we’re dedicated to keeping our clients and students informed and up-to-date on the latest tax changes and how they affect the advice you provide to your clients. All our personal T1 taxation courses, along with our core bookkeeping courses, are in the process of being updated with 2014 Budget changes. In fact, most of these courses will be updated and ready for your tax and accounting training needs in March! This makes Knowledge Bureau the most current and timely educational resource for your ongoing professional development and training needs.