- Tax Exemption on Cash Donations: If you make a cash donation within 30 days after selling real estate or shares from a private corporation, you may be exempt from paying tax on some or all of the capital gains.
- Conditions for Exemption: The exemption amount depends on the proportion of the sale proceeds that are donated. Additionally, the buyer of the property or shares must not be closely related to the seller or the recipient of the donation.
- Five-Year Rule: For five years following the sale, neither the donor nor anyone closely related to them can reacquire the property or a substitute property. In cases where shares are redeemed, the donor must not be closely related to the corporation at the time of redemption.
- Consequences of Reacquisition or Redemption: If the property or shares are reacquired or redeemed within this five-year period, the amount that was previously exempt from tax will be added to the donor’s income for that year.
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