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.
APR 30 1986
K.B. Harding
This is in reply to your letter of January 13, 1986, concerning the treatment of gifts made by Canadian residents to charitable institutions located in the United States.
Paragraph 6 of Article XXI of the Canada-United States Income Tax Convention, a copy of which is attached for your perusal, outlines the rules applicable to gifts made by a resident of Canada to an organization which is resident in the United States. This paragraph provides that contributions made by a resident of Canada, to an organization which is resident in the United States and which is generally exempt from U.S. tax, are treated as charitable contributions provided the organization could qualify in Canada to receive deductible contributions if it were organized or resident in Canada. This paragraph limits the amount of contributions to those set out in paragraph 110(l)(a) of the Canadian Income Tax Act.
The current limitations under the Act provide for a deduction of gifts made to a charitable organization in the United States to the extent it does not exceed 20 per cent of the United States source income of the taxpayer for the year. An exception to this rule is the case where contributions are made to a college or university at which the Canadian resident or a member of his family is or was enrolled, in such a case the 20 per cent limitation applies to the total income of the Canadian resident and not just his United States source income.
The term "family" used above means an individual's brothers and sisters (whether by whole or half-blood, or by adoption), spouse, ancestors, lineal descendants, and adopted descendants.
You may wish to enquire of our Registrations Division at 875 Heron Road, Ottawa K1A 0L8, as to the status of the particular institution in question.
We trust this is adequate for your purposes.
Yours sincerely,
E. E. CAMPBELL R.G. D'Aurelio Director Provincial and International Relations Division
Attachment
KBH/jb (5496)
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