Donations of Publicly Traded Securities and Ecologically Sensitive Land
Although taxpayers who donate capital properties can claim a tax credit for their value, they are also required to report a capital disposition, which can result in a capital gain. However, the budget proposes to reduce the inclusion rate to zero where the property in question is a publicly listed security or ecologically sensitive land, effectively making the capital gain non-taxable.
Previously, the inclusion rate for donations of these types of properties was 25%, as opposed to 50% for capital gains generally.
Click here to return to the 2006 Federal Budget Tax Changes index.
