Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Taxpayer has described various scenarios involving the gifting of his principal residence or a rental property. He is requesting confirmation of the tax implications in order to decide on a course of action.
Position: No comments provided as we do not offer tax planning advice.
Reasons: Income tax implications are dependent on the taxpayer's course of action. Referred the taxpayer to several CRA publications for general comments.
XXXXXXXXXX
Bob Naufal
2012-045386
November 1, 2012
Dear XXXXXXXXXX:
Re: Donating Apartment to XXXXXXXXXX
This is in response to your initial email dated July 3, 2012 and subsequent emails received to date regarding the possible donation of your principal residence or a rental property to a registered charity. We also acknowledge the various phone discussions with you regarding your emails.
As we discussed with you on October 25, 2012, the situation that you have described appears to contemplate alternate courses of action, which are somewhat complex. The information that you provided is very limited which makes it difficult for us to fully consider the potential tax issues that may arise. Further, you appear to be seeking tax planning advice. The Canada Revenue Agency (“CRA”) does not offer tax planning advice and consequently, we are unable to provide you with a definitive response to your questions or how to manage your tax affairs. In this regard, you may wish to seek professional tax advice.
We would like to mention that the CRA website contains useful information that can help taxpayers find answers on how the law may be generally applied by the CRA. You may be interested in Interpretation Bulletins IT-226R - Gift to a charity of a residual interest in real property or an equitable interest in a trust and IT-120R6 - Principal Residence, as well as Guide T4037 Capital Gains, which are available on our web site at www.cra-arc.gc.ca.
Yours truly,
Jenie Leigh
Section Manager
for Division Director
Financial Industries and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2012
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2012
Email this Content