Revenue Canada Taxation Head Office
J.A. Szeszycki (613) 957-2130
JAN 14 1988
Dear Sirs:
Re: Allocation of Charitable Donations --------------------------------------
The purpose of this letter is to provide confirmation, as requested by you in your letter of December 3, 1987, of your telephone conversation with Mr. Jack Szeszycki of our staff concerning alternative methods of claiming a deduction under paragraph 110(1)(b.1) of the Income Tax Act (the "Act") in respect of a gift to an institution where the gifted property was held in joint custody.
Specifically, you wished confirmation of whether or not the value of property held jointly by a husband and wife, that was gifted to an institution or public authority in Canada, can be allocated between the two owners at their discretion for the purposes of a claim by each of them under paragraph 110(1)(b.1), independently of the required allocation of "proceeds of disposition" for the purpose of the calculation of any gains or losses resulting from the disposition of the property. You indicate awareness that such a discretionary allocation is considered administratively acceptable to the Department for charitable donation claims under paragraph 110(1)(a) of the Act.
Upon consultation with our Assessing and Enquiries Directorate, whose responsibilities include matters of administrative policy, we are advised that where donations are made under any of paragraphs 110(1)(a), (b) or (b.1) of the Act by the husband, wife or both parties they may choose whichever allocation of the donation is most advantageous to them for tax purposes. This discretionary allocation applies as well to subsequent year claims in respect of any unused portion of the donation. You are advised to ensure that the donation claims are adequately explained upon filing of the applicable returns, particularly in respect of the individual who uses a copy of the original certificate to support the claim.
Your truly
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch