An individual settles a charitable remainder trusts (CRT) with capital property and gifts an equitable interest in the CRT to a qualified donee that is a registered charity, the eligible amount of which is included in the individual’s “total charitable gifts” under s. 118.1(1). Is the individual eligible to include the taxable capital gain, arising from the transfer of the capital property to the CRT, in variable B of the definition of “total gifts”? CRA responded:
[G]iven our longstanding view that the property gifted by the individual to the qualified donee (e.g., the registered charity) is an equitable interest in a CRT (the eligible amount of which is included in the individual’s total charitable gifts), it would follow that the taxable capital gain referred to in Variable B is in respect of the gift of that equitable interest made to the qualified donee. The individual’s taxable capital gain arising from the transfer of the capital property to the CRT would not be included in variable B … .