Land trusts expect more U.S. donations
Last Updated: Monday, November 1, 2010 | 10:08 AM AT
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A change in tax law should be a boon for Canadian land trusts looking for Americans to donate land they own north of the border, says the president of a P.E.I. group.
Peter Rukavina expects some Americans will now move quickly to make land donations. (CBC) Canadians who donate land to trusts, which own land and preserve them from development, don't have to pay capital gains tax and under the new law Americans will get the same tax benefit.
Peter Rukavina, president of the L. M. Montgomery Land Trust on Prince Edward Island, told CBC News the change will make soliciting donations much easier.
"There is a lot of non-resident land ownership, especially along the coast in P.E.I.," said Rukavina.
"In many cases those people have been faced with this huge stumbling block. So, having that out of the way, I think will allow people who've wanted to proceed very quickly with that to proceed very quickly."
The donations will go through a U.S.-based non-profit called American Friends of Canadian Land Trusts. The changes allow that group to issue U.S. tax receipts and then transfer the land to Canadian preservation groups.
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