What is the eligible amount of my gift?
In most cases, the eligible amount of your gift is the amount shown on your charitable donation receipt.
However, in more technical terms, the eligible amount of the gift is the amount by which the fair market value (FMV) of the gifted property exceeds the amount of an advantage, if any, in respect of 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.
You donate $1,000 to the Anytown Ballet Company, which is a registered charity. In gratitude, the company provides you with 3 tickets to a show that are valued at $150. You are therefore considered to have received an advantage of $150. The eligible amount of the gift is $850 ($1,000 − $150).
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 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-resource 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 in which the eligible amount may be deemed to be nil. For more information, see the sections called "Deemed fair market value" and "Official donation receipts" in Pamphlet P113, Gifts and Income Tax.
Report a problem or mistake on this page
- Date modified: