Written on March 15, 2013 – 6:17 am | by Malcolm Burrows
Inspired by my colleague Elaine Blades and her two recent blogs on “estate stuff worth knowing”, I have put together a short test on charitable giving in Canada. Here are ten quick questions about the tax treatment of charitable gifts. All the questions are true or false, and the answers are at the bottom.
1. Once given, a charitable gift is irrevocable.
2. To be eligible for a tax receipt, a gift must provide no benefit to the donor.
3. Gifts by will are claimed against 100% of net income in the final two lifetime returns.
4. Gifts by will include donations selected by the executor.
5. A gift of appreciated public securities is exempt from capital gains.
6. A charitable remainder trust can only distribute net income annually to the life beneficiary.
7. Individuals receive tax deductions for charitable gifts.
8. Individuals can claim a lifetime charitable gift over 6 years on their taxes.
9. A testamentary trust with a charity as beneficiary can be receipted as a gift by will if there is the ability to encroach on capital.
10. An immediate receipt for a gift of private company shares can be issued if the company owner is a director of the charity.
1T, 2F, 3T, 4F, 5T, 6T, 7F, 8T, 9F, 10F
Thanks for playing. Please don’t hesitate to send me a note if you have any questions: firstname.lastname@example.org