Eligible amount of the gift
In most cases, the eligible amount of your gift will be indicated on your official donation receipt.
The eligible amount of the gift is the fair market value of the gifted property that exceeds the amount of an advantage, if any, as it relates to the gift.
The advantage is generally the total value of any property, service, compensation, use, or any other benefit that you are entitled to as partial consideration for, in gratitude for, or in any other way related to the gift. The advantage may be contingent or receivable in the future, either to you, or a person or partnership not dealing at arm's length with you.
The advantage also includes any limited-recourse debt (including amounts owed by persons not dealing at arm’s length with you) in respect of the gift at the time it was made. For example, there may be a limited recourse debt that can reasonably relate to a gift to a qualified donee as part of a gifting arrangement that is a tax shelter.
Generally, a limited recourse debt is one where the borrower is not at risk for the repayment. In this case, the eligible amount of the gift will be reported in box 13 of Form T5003, Statement of Tax Shelter Information.
For more information on tax shelters and gifting arrangements, see Guide T4068, Guide for the Partnership Information Return (T5013 Forms).
There are situations when the eligible amount may be deemed to be nil. For more information:
Carrying forward tax credits
You do not have to claim the eligible amount on your tax return for the current year.
You may carry forward amounts on your return for any of the next 5 years. For a gift of ecologically sensitive land, amounts may be carried forward for any of the next 10 years.
You must claim tax credits for gifts you carried forward from a previous year before you claim tax credits for gifts in the current year.
You can only claim the amounts once, so keep a record of the portion of the eligible amount you are claiming this year and the amount you are carrying forward.
Federal and provincial or territorial rates for 2025
Generally, you can claim part or all of the eligible amount of your gifts, up to the limit of 75% of your net income (line 23600) for the year.
You may also claim eligible amounts made in the previous 5 or 10 years for ecological gifts if they have not been claimed before.
