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Canada specific question.

My father is planning on making a cultural donation to a museum. He will receive a 100K tax receipt for the donation. My marginal tax rate is significantly higher than his, and he already has more write-offs than he can use. Can he transfer the tax receipt to me, or sell/gift me the piece which I can then donate?

The Canada tax code seems to suggest that any transfer of property between us would be assessed at the fair market value because we don't have an "arm's length" relationship (Income Tax Act 69(1)(c)). This would mean that if he gave or sold me the piece he would have to declare it as 100k of income (which defeats the purpose of getting a write-off).

Is there some way to transfer the piece without incurring the tax from the added 'income'? Is there a situation where this would work if the transfer was made several years ago, or the piece was of a lower value? It seems strange that you can give gifts of cash and not pay a penalty, but giving any object triggers this requirement to declare it as income for the giver.

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