3702 (1) For the purposes of subsection 3701(1), the value of property or a portion thereof owned by a charitable foundation, and not used directly in charitable activities or administration, on the last day of a period shall be determined as of that day and shall be
(a) in the case of a non-qualified investment, the greater of its fair market value on that day and its cost amount to the foundation;
(b) subject to paragraph (c), in the case of property other than a non-qualified investment that is
(i) a share of a corporation that is listed on a prescribed stock exchange, the closing price or the average of the bid and asked prices of that share on that day or, if there is no closing price or bid and asked prices on that day, on the last preceding day for which there was a closing price or bid and asked prices,
(ii) a share of a corporation that is not listed on a prescribed stock exchange, the fair market value of that share on that day,
(iii) an interest in real property, the fair market value on that day of the interest less the amount of any debt of the foundation incurred in respect of the acquisition of the interest and secured by the real property or the interest therein, where the debt bears a reasonable rate of interest,
(iv) a contribution that is the subject of a pledge, nil,
(v) an interest in property where the foundation does not have the present use or enjoyment of the interest, nil,
(vi) a life insurance policy, other than an annuity contract, that has not matured, nil, and
(vii) a property not described in any of subparagraphs (i) to (vi), the fair market value of the property on that day; and
(c) in the case of any property described in paragraph (b)
(i) that is owned in connection with the charitable activities of the foundation and is a share of a limited-dividend housing company or a loan,
(ii) that has ceased to be used for charitable purposes and is being held pending disposition or for use in charitable activities, or
(iii) that has been acquired for use in charitable activities,
the lesser of the fair market value of the property on that day and an amount determined by the formula
(A / .045) × (12 / B)
where
- “A”
- is the income earned on the property in the period, and
- “B”
- is the number of months in the period.
(2) For the purposes of subsection (1), a method that the Minister may accept for the determination of the fair market value of property or a portion thereof on the last day of a period is an independent appraisal made
(a) in the case of property described in subparagraph (1)(b)(ii) or (iii), not more than three years before that day; and
(b) in the case of property described in paragraph (1)(a), subparagraph (1)(b)(vii) or paragraph (1)(c), not more than one year before that day.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- SOR/87-632, s. 1
- SOR/94-686, ss. 22(F), 51(F), 73(F), 79(F)
- Date modified: