The federal government has introduced tax changes to help encourage U.S. residents to donate real property in Canada for use in the public interest of Canadians.

The interaction of the Canadian and U.S. tax systems can present an impediment to such donations.

The American Friends of Canadian Land Trusts is a non-profit corporation that has been approved by the Internal Revenue Service of the U.S. as a charitable organization. Its purposes include the preservation of Canadian lands.

Designating the AFCLT as a “prescribed donee” ensures that U.S. donors of Canadian real property to the organization can obtain U.S. tax relief for such donations, at no cost to Canada.

“This initiative will encourage donations of lands so that they may be preserved for the enjoyment of current and future generations,” said Jim Flaherty, Minister of Finance, speaking Friday at an event at Thickson’s Woods, a land trust nature reserve located in south Whitby, Ontario.

The granting of prescribed donee status is typically used to help protect Canada’s natural heritage. T

The AFCLT intends to achieve this goal encouraging the preservation of natural areas in Canada that are owned by non-residents.

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