What’s in this article?
Gifts in the form of capital property are gifts, other than money, to a qualified donee (ex. registered charity, registered municipality, etc.) that can be claimed as charitable donations. These gifts are claimed using Schedule 9: Donations and gifts. You must have a receipt from the registered charity (qualified donee), which would include the fair market value of the donation.
If you are filing a federal tax return, you will claim your gifts of capital property (both depreciable property and capital property) using Schedule 9. If you donated through a company program or through your employer, the donation amount must be shown on your T4, T3, T4A, or T5013 slip. Do not manually enter these donation amounts in Schedule 9 – they will automatically be populated when you enter each individual slip elsewhere in the tax return software.
If you are filing a Québec tax return, you will also claim your charitable donations on your general tax return (TP-1.G-V) or on Schedule V.
Generally, capital property is defined as property that, if it were sold, would result in a capital gain or loss. Capital properties include:
- Financial assets (excluding money), like stocks, bonds, or mutual funds
- Prints, etchings, drawings, paintings, sculptures, or other similar works of art
- Rare folios, manuscripts, or books
- Stamps or coins
- Land and buildings
- Personal property such as furniture, automobiles, boats, and cottages
If you donate capital property, you may be able to increase your total donation limit for the year. Click this link for more information on calculating your donation limit.
If you donated capital property in the tax year to a qualified donee, you may be able to claim federal and provincial or territorial non-refundable tax credits when you file your income tax return. If you lived in Québec on December 31, you can also claim your provincial tax credit on your Québec tax return.
Canada Revenue Agency (CRA) says…
If you donate capital property, we consider you to have disposed of that property for proceeds equal to the fair market value of the property. You have to report any capital gain on your income tax and benefit return in the year you donated the property. In some cases, you may be able to claim a capital loss in the year you donated the property.
The designated amount cannot be more than the FMV (Fair Market Value) and not less than the greater of:
- Any advantage in respect of the gift; and
- The adjusted cost base of the property.
Note: You or the qualified donee may need to get the property appraised to determine its fair market value.
Follow these steps in H&R Block’s tax software to file your 2015 taxes:
- Click the PREPARE tab.
- Click the OTHER icon. You will find yourself here:
- Under the CHARITABLE & POLITICAL CONTRIBUTION section, select the checkbox labelled Donations and gifts (Schedule 9).
4. Scroll to the bottom of the page and click Continue.
When you arrive at the page for Donations and gifts (Schedule 9), enter your information into the tax software.
Note: Be sure to select Gift of capital property from the list under Type of donation or gift.
- Gifts of shares, stock options, and other capital property (CRA website)
- P113 - Gifts and Income Tax 2015 (CRA website)
- T1170: Capital Gains on Gifts of Certain Capital Property (CRA website)
- Schedule 9: Donations and Gifts (CRA website)
- Line 395 – Tax credits for Donations and Gifts (Revenu Québec website)