Schedule 11A - Donations and gifts tax credit calculation
Use Schedule 11A to calculate the total donations and gifts tax credit.
Testamentary trust
Estate donations
Estate donations (donations made by will and designation donations) are deemed to be made by the individual's estate and where certain conditions are met, by the individual's graduated rate estate (GRE). See GRE donations on page 65. The donations are deemed to be made at the time the property is transferred to the donee.
An estate can claim the donations and gifts tax credit in respect of a donation that is not a GRE donation or former GRE donation in the year in which the donation is made or in any of the five following years (or ten years for a gift of ecologically sensitive land made after February 10, 2014). However, the donation cannot be allocated to a tax year of the individual or an earlier year of the estate.
For deaths that occurred before 2016, gifts bequeathed in the deceased person's will and designation donations were deemed to be made by the individual immediately before their death. For more information on gifts where death occurred before 2016, see the T3 Trust Guide for the 2015 tax year.
GRE donations
GRE donations are donations by a GRE to a qualified donee. The donated property must be property that was acquired by the estate on and as a consequence of the death (or property that was substituted for such property). GRE donations also include designation donations.
You can allocate a GRE donation among any of:
-
the tax year of the GRE in which the donation is made
-
an earlier tax year of the GRE
-
the last two tax years of the deceased individual (the final return and the return for the preceding year)
In addition, a gift made after the 36 month period but within 60 months after the date of death by a former GRE that continues to meet all of the requirements of a GRE except for the 36 month time limit, can be allocated among any of:
-
the tax year of the estate in which the donation is made
-
an earlier tax year of the estate, if the estate is a GRE in that preceding year
-
the last two tax years of the deceased individual (the final return and the return for the preceding year)
If the donation is not a one-time payment (for example, a donation that will continue to be made according to the terms of the will), treat the recipient as an income beneficiary and deduct the donation as an allocation of trust income on line 28 of the T3 return. You also have to include the donation on the appropriate line of Schedule 9.
Inter vivos trust
If the recipient is an income beneficiary according to the terms of the trust agreement, deduct the donation on line 28 of the return, and include it on the appropriate line of Schedule 9.
Note
In limited situations, a distribution by an inter vivos
trust to a registered charity may instead qualify for a
donations and gifts tax credit on line 16 of Schedule 11;
for example, where an alter ego trust makes a
distribution to a registered charity following the death of
the settlor of the trust, and the trustee had discretion
under the terms of the trust indenture to distribute the
property either to the qualified donee or to someone
else.
If the trust donates an obligation of the trust or of a related person, a share issued by a corporation related to the trust, or any other security issued by a person related to the trust, call 1-800-959-8281.
A communal organization that made charitable donations can choose not to claim them and can elect to designate the donations to beneficiaries. For more information, see Information Circular IC78-5R, Communal Organizations.
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