395 – Tax credits for donations and gifts

You can claim the following tax credits on line 395:

  • the tax credit for charitable donations and other gifts
  • the additional tax credit for a large cultural donation
  • the tax credit for cultural patronage

To calculate the amount that you can claim on line 395, you must complete either Work Chart 395 or Schedule V.

You must complete Work Chart 395 if both of the following statements apply to your situation:

  • Your donations and gifts were all made in 2016 (in other words, you are not carrying to 2016 an amount for donations and gifts made in a previous year).
  • Your donations and gifts were all monetary donations (see the note below) made to one of the following donees:
    • a registered charity
    • a registered Canadian amateur athletic association
    • a registered Québec amateur athletic association
    • a recognized political education organization
Note

The following are considered monetary donations:

  • cash donations
  • donations made by cheque, credit card or money order
  • donations made by wire payment or electronic funds transfer

If neither of the statements above applies to your situation, you must complete Schedule V.

You must also complete Schedule V to claim the additional tax credit for a large cultural donation or the tax credit for cultural patronage, which you may be able to claim if you donated at least $5,000 to a registered charity operating in Québec in the arts or culture sector.

Tuition fees do not qualify for the credit, even if they are related to religious instruction.

Completing Work Chart 395

You can claim a tax credit for charitable donations and gifts for the monetary donations you made in 2016 to one of the following donees:

  • a registered charity
  • a registered Canadian amateur athletic association
  • a registered Québec amateur athletic association
  • a recognized political education organization

Enter the total of your charitable donations and gifts on line 1 of the work chart.

The tax credit rate is 20% for the first $200 and 24% for the rest of the donation.

You can carry forward an amount that you do not use to claim the tax credit in 2016 to taxation years 2017 through 2021.

Note

The amount of your donation is shown on the receipt issued by the donee (the organization to which the donation was made). Keep the receipt in case we ask for it.

Member of a religious order who has taken a vow of perpetual poverty

If you are a member of a religious order who has taken a vow of perpetual poverty and all or part of your charitable donations and gifts were made to your religious order, enter the total amount of those donations and gifts on line 1 of Work Chart 395.

Completing Schedule V

Tax credit for charitable donations and other gifts (Part A of Schedule V)

You can claim a tax credit for charitable donations, gifts of cultural property, ecological gifts and gifts of musical instruments that you made in 2016, as well as for any portion of such donations made from 2011 to 2015 that you have never used to calculate the tax credit.

Information about charitable donations is presented in Table 1 below. Information about other gifts (gifts of cultural property, ecological gifts and gifts of musical instruments) is presented in tables 2 and 3.

Table 1: Charitable donations and gifts (lines 1 through 20 of Schedule V)
Types of donations and gifts Principal donees Comments
  • Monetary donations (other than donations for which you are claiming the tax credit for cultural patronage [see “Tax credit for cultural patronage”])
  • Gifts of property (other than gifts covered in Table 2 or Table 3)
  • A registered charity
  • A registered Canadian amateur athletic association
  • A registered Québec amateur athletic association
  • The government of Canada, Québec or another province
  • A Canadian municipality
  • A municipal or public body performing a function of government in Canada
  • The United Nations or one of its agencies
  • The Organisation internationale de la Francophonie or one of its subsidiary bodies
  • A prescribed foreign university
  • A recognized political education organization
  • A registered museum
  • A registered cultural or communications organization
Note

Any unused portion of the eligible amount of a donation or gift, that is, the portion for which you did not claim the tax credit, can be carried forward five years from the year in which you made the donation or gift.

Example

Mr. Patel donated $1,500 to a registered charity. In gratitude, the organization gave him two tickets to a show, worth $200. The eligible amount of the donation is $1,300 ($1,500 – $200).

Donations of food products

If, after March 26, 2015, you donated food products that you produced, the eligible amount of the donation can be increased by 50%, provided all of the following conditions were met at the time of the donation:

If, after March 17, 2016, you donated food products that you processed, the eligible amount of the donation can be increased by 50%, provided all of the following conditions were met at the time of the donation:

  • You operated a food processing business.
  • The donation was made to a registered charity that was a member of the Food Banks of Quebec network (either a Moisson member or an associate member).
  • The donated food products were eligible food products.

If all of the conditions were met, enter the eligible amount of the donation of line 5a of Schedule V.

Gift of a building for cultural purposes

If you donated a building situated in Québec that can house artist studios or one or more cultural organizations, the eligible amount of the gift can be increased by 25%, provided both of the following conditions are met:

  • The Ministère de la Culture et des Communications issued you a qualification certificate for the building, along with a certificate confirming its fair market value based not only on the value of the building itself, but also on that of the land on which it is located.
  • The gift was made to one of the following donees:
    • a Québec municipality or a municipal or public body performing a function of government in Québec;
    • a registered charity operating in Québec for the benefit of the community, such as the Société d'habitation et de développement de Montréal, or operating in the arts or culture sector;
    • a registered cultural or communications organization; or
    • a registered museum.

If both conditions are met, enter the eligible amount of the gift on line 12 of Schedule V (to determine the eligible amount, you must use the fair market value shown on the certificate issued by the Ministère de la Culture et des Communications); otherwise, enter the eligible amount of the gift on one of lines 1 through 3 of Schedule V, depending on the particular donee.

Table 2: Gifts of cultural property (lines 21, 25, 27 and 29 of Schedule V)
Types of gifts Donees Comments
Gifts of Canadian cultural property for which you hold a Cultural Property Income Tax Certificate (form T871) issued by the Canadian Cultural Property Export Review Board An institution or a public authority designated by the Minister of Canadian Heritage
  • If you donated a public work of art or
    donated a work of art to a Québec museum, the eligible amount of your donation can be increased (see “Gift of a public work of art” and “Works of art donated to a Québec museum”).
  • Enclose the Certificate of Disposition of Cultural Property (form TPF-712.0.1-V) with your return if you donated cultural property for which you must hold such a certificate.
Gifts of property for which you hold a Certificate of Disposition of Cultural Property (form TPF-712.0.1-V) issued by the Conseil du patrimoine culturel du Québec (formerly the Commission des biens culturels du Québec)
  • A certified archival centre
  • A recognized museum
  • The Musée national des beaux-arts du Québec
  • The Musée d'art contemporain de Montréal
  • The Musée de la civilisation
  • The Montreal Museum of Fine Art
Gifts of Québec cultural property recognized or classified under the Cultural Property Act or the Cultural Heritage Act An institution or a public authority in Canada designated by the Minister of Canadian Heritage

Any unused portion of the eligible amount of a donation or gift, that is, the portion for which you did not claim the tax credit, can be carried forward five years from the year in which you made the donation or gift.

Table 3: Ecological gifts and gifts of musical instruments (lines 22 and 23 of Schedule V)
Types of gifts Donees Comments

Ecological gift

Land in Québec with recognized ecological value, or servitudes encumbering such land

  • A registered charity whose primary mission is the conservation of Québec's ecological heritage
  • The Québec government, the Canadian government, a Québec municipality or a municipal or public body performing a function of government in Québec
Enclose with your return the Certificate for a Gift of Land or a Servitude with Ecological Value (form TPF-712.0.2-V) issued by the Ministère du Développement durable, de l'Environnement et de la Lutte contre les changements climatiques.

Ecological gift

Ecological property in a Canadian province or territory that borders Québec or in a U.S. state that borders Québec. The preservation and conservation of the property must be important for Québec's ecological heritage.

  • A registered charity whose primary mission is the conservation of Canada's ecological heritage
  • The Québec government, the Canadian government or the government of another Canadian province
  • A municipality or a municipal or public body performing a function of government
  • The U.S. government or the government of a U.S. state
Contact us to find out what documents are required.
Gifts of musical instruments
  • A public or private educational institution at the elementary, secondary, college or university level in Québec
  • An institution providing instruction in music that is part of the network of the Conservatoire de musique et d'art dramatique du Québec

Any unused portion of the eligible amount of a donation or gift, that is, the portion for which you did not claim the tax credit, can generally be carried forward five years from the year in which you made the donation or gift. However, any unused portion of an amount for an ecological gift made after February 11, 2014, can be carried forward for up to 10 years.

Gift of a public work of art

If you made a charitable donation or a gift of cultural property to certain donees and the donated property was a public work of art (This link will open a new window), the eligible amount of the gift can be increased by 25% or 50%.

25% increase

The eligible amount of the gift can be increased by 25% if you hold a certificate confirming the fair market value of the public work of art (see “Certificate confirming the fair market value”) and the gift was made to either of the following donees:

  • the Québec government (if the donation was made to an educational institution that is a mandatary of the state, see "50% increase");
  • a Québec municipality or a municipal or public body performing a function of government in Québec (if the gift was made to a school board, see "50% increase"), provided that, according to the certificate issued by the Minister of Culture and Communications, the work was acquired by the municipality or the body in accordance with its policy of acquisition and conservation of public works of art.

If, based on the above, the eligible amount of the gift can be increased by 25% and the gift of the public work of art is recognized as a gift of cultural property, enter the eligible amount of the gift on line 27 of Schedule V. However, if the gift constitutes a charitable donation, enter the eligible amount of the gift on line 8 of Schedule V.

If, based on the above, the eligible amount of the gift cannot be increased and the gift of the public work of art is recognized as a gift of cultural property, enter the eligible amount of the gift on line 21 or 29 of Schedule V depending on the donee. However, if the gift constitutes a charitable donation, enter the eligible amount of the gift on one of lines 1, 2, 3 or 10 of Schedule V, depending on the donee (see “Gift of a work of art whose value cannot be increased as a public work of art”).

50% increase

The eligible amount of the gift can be increased by 50% if you hold a certificate confirming the fair market value of the public work of art (see “Certificate confirming the fair market value”) and the gift was made to any of the following donees:

  • an educational institution that is a mandatary of the state;
  • a school board governed by the Education Act or the Education Act for Cree, Inuit and Naskapi Native Persons;
  • a registered charity whose mission is education and that is one of the following:
    • an educational institution established under Québec law,
    • a general or vocational college,
    • an educational institution at the university level,
    • a private educational institution accredited for the purposes of subsidies under the Act respecting private education.

In order for the 50% increase to apply, the certificate issued by the Ministère de la Culture et des Communications must confirm that the work of art acquired by the donee was acquired for installation in a place accessible to students and that its conservation can be ensured.

If, based on the above, the eligible amount of the gift can be increased by 50% and the gift of the public work of art is recognized as a gift of cultural property, enter the eligible amount of the gift on line 25 of Schedule V. However, if the gift is a charitable donation, enter the eligible amount of the gift on line 6 of Schedule V.

If, based on the above, the eligible amount of the gift cannot be increased and the gift of the public work of art is recognized as a gift of cultural property, enter the eligible amount of the gift on line 21 of Schedule V. However, if the gift constitutes a charitable donation, enter the eligible amount of the gift on either line 1 or line 2 of Schedule V, depending on the donee (see “Gift of a work of art whose value cannot be increased as a public work of art”).

Certificate confirming the fair market value

In order to increase the eligible amount of a gift of a public work of art by 25% or 50%, you must hold a certificate confirming the fair market value of the public work of art you donated. If the gift constitutes a charitable donation, its fair market value must be certified by the Ministère de la Culture et des Communications; if, however, it constitutes a gift of cultural property, its fair market value must be certified by the Canadian Cultural Property Export Review Board or the Conseil du patrimoine culturel du Québec, as applicable (see Table 2).

You must use the fair market value shown on the certificate to determine the eligible amount of the gift.

Gift of a work of art whose value cannot be increased as a public work of art

You can claim a tax credit if you donate a work of art whose value cannot be increased as a public work of art and the donation constitutes a charitable donation (for example, a gift of a work of art to a registered charity), provided the donee disposes of the work of art in the year the gift is made or in any of the subsequent five years. If you receive the receipt for your gift after filing your return, you can ask to have the credit granted to you for the year of your gift. To do so, you must file form TP-1.R-V, Request for an Adjustment to an Income Tax Return.

This measure does not apply to a gift of a work of art:

  • that constitutes a gift of cultural property;
  • made to the government of Canada, Québec or another province;
  • made to a Canadian municipality;
  • made to an organization that acquired the work of art as part of its primary mission;
  • made to a municipal or public body performing a function of government in Canada.

Works of art donated to a Québec museum

If you donated a work of art to a Québec museum, that is, a museum located in Québec or a recognized museum, the eligible amount of the gift can be increased by 25%.

Enter the eligible amount of the gift on line 10 of Schedule V. If the gift can be recognized as a gift of cultural property, enter the eligible amount of the gift on line 29 of Schedule V instead.

Special cases

If any of the following situations apply to you, contact us:

  • You donated capital property and, under federal legislation, designated an amount in respect of the property that is deemed to be both the proceeds of disposition and the fair market value of the gift and that is less than the fair market value of the property at the time of the donation.
  • You donated cultural property or a work of art with a recognized reserve of usufruct or use.
  • You donated a non-qualifying security (such as an unlisted share that is not a share in a corporation to which you are related).
  • You donated an option to acquire property held by you.

Additional tax credit for a large cultural donation (Part B of Schedule V)

A large cultural donation is a monetary donation (see the note below), the eligible amount of which is at least $5,000, made in one or more instalments to one of the following donees:

  • a registered charity operating in Québec in the arts or culture sector;
  • a registered cultural or communications organization;
  • a registered museum, the Musée national des beaux-arts du Québec, the Musée d'art contemporain de Montréal, the Musée de la civilisation or a museum located in Québec and established under the Museums Act.

If you made such a donation, you can claim both the tax credit for charitable donations and other gifts and the additional tax credit for a large cultural donation.

You cannot claim the additional tax credit for a large cultural donation for more than one donation. Therefore, if you claimed the credit for such a donation in 2013, 2014 or 2015, you cannot claim it for a donation made in 2016. However, you can claim the tax credit in 2016 for the unused portion of the eligible amount of a donation that you made in 2013, 2014 or 2015.

The tax credit is equal to 25% of the eligible amount of the donation ($25,000 maximum).

The unused portion of the eligible amount of the donation can be carried forward four years following the year of the donation.

Note

The following are considered monetary donations:

  • cash donations
  • donations made by cheque, credit card or money order
  • donations made by wire transfer or electronic funds transfer

Tax credit for cultural patronage (Part C of Schedule V)

You can claim this tax credit for qualifying donations you made in 2016, as well as for any portion of such donations made in 2013 (after July 3), in 2014 or in 2015 for which you did not claim the tax credit.

A qualifying donation is a monetary donation (see the note below), the eligible amount of which is at least $250,000, made to one of the following donees:

  • a registered charity operating in Québec in the arts or culture sector;
  • a registered cultural or communications organization;
  • a registered museum, the Musée national des beaux-arts du Québec, the Musée d'art contemporain de Montréal, the Musée de la civilisation or a museum located in Québec and established under the Museums Act.

You may also be entitled to the tax credit if the eligible amount of the donation for 2016 is at least $25,000 and the donation is made pursuant to a promise of donation registered with the Minister of Culture and Communications under which you undertake to pay at least $250,000 to the same donee over a period of no more than ten years (the eligible amount of the donation for each year must be at least $25,000).

The tax credit is equal to 30% of the eligible amount of the donation. You cannot claim the credit if you have already claimed, for the same donation, the tax credit for charitable donations or other gifts or the additional tax credit for a large cultural donation.

The unused portion of the total eligible amount of your donations that qualify for the tax credit can be carried forward five years following the year of the donation.

Note

The following are considered monetary donations:

  • cash donations
  • donations made by cheque, credit card or money order
  • donations made by wire transfer or electronic funds transfer
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