Income Tax Act — I-3.3 118.1
ividual, the individual is deemed to receive at that time proceeds of disposition in respect of the work of art equal to the greater of its cost amount to the individual at that time and the amount of the advantage, if any, in respect of the gift, and (ii) if the individual is the graduated rate estate of a particular individual who created the work of art that is the subject of the gift and at the time immediately before the particular individual’s death the fair market value of the work of art exceeds its cost amount to the particular individual, the particular individual is deemed to receive at that time proceeds of disposition in respect of the work of art equal to the cost amount to the particular individual at that time and the estate is deemed to have acquired the work of art at a cost equal to those proceeds; and (b) in the case of a gift described in the definition total charitable gifts in subsection (1), (i) if at the time the gift is made the fair market value of the work of art that is the subject of the gift exceeds its cost amount to the individual, then the amount designated in the individual’s return of income under section 150 for the taxation year that includes that time is deemed to be (A) the individual’s proceeds of disposition in respect of the work of art, and (B) the fair market value of the work of art for the purposes of subsection 248(31), (ii) a designation under subparagraph (i) is of no effect to the extent that the amount designated (A) exceeds the fair market value of the work of art otherwise determined, or (B) is less than the greater of the amount of the advantage, if any, in respect of the gift, and the cost amount to the individual of the work of art, (iii) if the individual is the graduated rate estate of a particular individual who created the work of art that is the subject of the gift and at the time immediately before the particular individual’s death the fair market value of the work of art exceeds its cost amount to the particular individual, (A) the amount designated in the particular individual’s return of income under section 150 for the taxation year that includes that time is deemed to be the value of the work of art at the time of the death, and (B) the estate is deemed to have acquired the work of art at a cost equal to that value, and (iv) a designation under subparagraph (iii) is of no effect to the extent that the amount designated (A) exceeds the fair market value of the work of art otherwise determined, or (B) is less than the cost amount to the particular individual of the work of art. Gifts made by partnership (8) If at the end of a fiscal period of a partnership an individual is a member of the partnership, the individual’s share of any amount that would, if the partnership were a person, be the eligible amount of a gift made by the partnership to any donee is, for the purpose of this section, deemed to be the eligible amount of a gift made to that donee by the individual in the individual’s taxation year in which the fiscal period of the partnership ends. Commuter’s charitable donations (9) Where throughout a taxation year an individual resided in Canada near the boundary between Canada and the United States, if (a) the individual commuted to the individual’s principal place of employment or business in the United States, and (b) the individual’s chief source of income for the year was that employment or business, a gift made by the individual in the year to a religious, charitable, scientific, literary or educational organization created or organized in or under the laws of the United States that would be allowed as a deduction under the United States Internal Revenue Code shall, for the purpose of the definition total charitable gifts in subsection 118.1(1), be deemed to have been made to a registered charity. Determination of fair market value (10) For the purposes of paragraph 110.1(1)(c) and the definition total cultural gifts in subsection 118.1(1), the fair ma