Friday, June 09, 2006

Environment Canada: Generous Donation to Canadians-Milestone-Ecogift Protects Rare Alvar Habitat Forever

Environment Canada: Generous Donation to Canadians-Milestone-Ecogift Protects Rare Alvar Habitat Forever: "In recognition of these generous donations of land by Canadians, the Government of Canada announced in Budget 2006 that Ecological Gifts made after May 2, 2006 will be exempt from the capital gains inclusion for income tax purposes.

An ecological gift is a donation of land or an interest in land - such as a conservation easement, covenant or servitude - that has been certified as 'ecologically sensitive' according to specific national and provincial criteria, to an approved environmental charity or any level of government. Ecologically sensitive lands are areas or sites that currently, or could in the future, significantly contribute to the conservation of Canada's biodiversity and environmental heritage. In exchange for their gift, donors of certified ecologically sensitive lands enjoy special income tax provisions specific to their gift. Ecological gifts receive tax treatment that is different from most other charitable gifts. Some benefits that they may receive are reduced taxable capital gain on the disposition of the property; no income limit for calculating the tax credit/deduction; donation value certified by the Government of Canada; and a tax liability for donees that do not protect the gifted land.
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