The US doesn't have "deemed sale", and US tax law on charitable donation is quite clear. If you donate property, and it was held less than a year, you can deduct the lesser of basis and FMV. If held more than a year, you can deduct FMV. From this deduction, you remove the value of things or services given you by the charity or at the charity's request.Burnaby49 wrote:Arthur Rubin wrote:IIRC, when you give "appreciated property" in Canada, even to a charity where a cash gift would be deductible, you are liable for capital gains tax as if you had sold it. Is that correct, Burnaby?
Yes, at least it was true when I worked in the area but that is quite a while back. The reasoning is obvious. If you make a cash donation to a charity then the money is assumed to come from after tax income. You get a deduction to the extent of the cash to partly compensate for your generosity.
There are substantiation and, potentially, assessment requirements, as well.