Art donations may be challenged.OTTAWA -- The Department of Finance announced changes to the Income Tax Act to limit the tax benefits from "buy-low, donate-high" charitable donations made under tax shelter tax shelter: see tax exemption. and other arrangements. The value of a tax receipt issued by a charity for gifts of property, will be limited to the donor's cost of the property where it is donated do·nate v. do·nat·ed, do·nat·ing, do·nates v.tr. To present as a gift to a fund or cause; contribute. v.intr. To make a contribution to a fund or cause. within three years of acquisition or acquired through a gifting arrangement. The change is intended to counteract schemes by promoters to buy art and equipment at low prices and arrange to donate the items to a registered charity with an overstated o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o value and earn the donor a tax credit worth more than the cost of the gift. At a later date the tax benefit might be reevaluated by Canada Customs and Revenue Agency Canada Customs and Revenue Agency was a department of the government of Canada. It split up into:
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