Did you donate capital property to a registered charity or another qualified organization? If you did, you’ll need to complete T1170: Capital gains on gifts of certain capital property to report such donations.
There are many different types of property that you can donate, each of which should be reported on your T1170. These properties can include:
- A share, debt obligation, or right listed on a designated stock exchange
- A share of the capital stock or a mutual fund corporation
- A unit of a mutual fund trust
- A prescribed debt obligation
- An interest in a related segregated trust fund
- Ecologically sensitive land (including a covenant, easement, or if your land is in Québec, a real servitude)
If there isn’t a financial advantage to donating your gift or certain capital property, you might not have to include the capital gains earned on them in your income. If there is an advantage, you may only have to pay taxes on some of the capital gain at a rate of 50%. For donations of ecologically sensitive land to private foundations, the tax exemption doesn’t apply. Refer to the P113 Gifts and Income Tax guide for more information on the taxing of gifts of certain capital property.
Where do I claim this?
Follow these steps in H&R Block’s tax software if to file your 2016 taxes:
- Under the PREPARE tab, click the OTHER icon. You'll find yourself here:
- Under the CHARITABLE AND POLITICAL CONTRIBUTIONS heading, select the checkbox labelled Capital gains on gifts of certain capital property (T1170), then click Continue.
- When you arrive at the page for your Capital gains on gifts of certain capital property, enter your information into the tax software.