Cultural property

Summary policy

Date
October 25, 2002

Reference number
CSP-C06

Key words

Cultural property (disposition, gift)

Policy statement

A certified cultural property is a property of outstanding significance and national importance to Canada, for which a certificate has been issued by the Canadian Cultural Property Export Review Board.

The Income Tax Act provides favourable income tax treatment for the disposition of certified cultural property to institutions and public authorities designated by the Minister of Canadian Heritage. This treatment includes a tax exemption for capital gains realized on the disposition of cultural properties to those designated institutions and, when disposition is by way of a gift to those institutions, the provision of a tax credit or a deduction to donors, up to 100% of their net income.

References

• Interpretation Bulletin IT-407, Dispositions of Cultural Property to Designated Canadian Institutions
• P113, Gifts and Income Tax
• Registered Charities Newsletter, Issue No. 24
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, subpara. 39(1)(a)(i.1), para. 110.1(1)(c) and ss. 118.1(1)