It is the time of year that we should begin thinking about Year End Tax Planning, and one area that is often given little thought is the planning for charitable donations. In a vast majority of work places, the push is on to give to the United Way through either payroll deduction or a lump sum payment, so now is a good time to review what tax deductible gifts are and what the benefits are from a tax viewpoint: Canadians can follow my post take action and you can get a sizable refund based on how much tax deducted. You need to email me if interested.
Tax deductible charitable gifts include the following:
| ü | Money or other property |
| ü | Gifts of ecologically sensitive land (get Certificate for Donation of Ecologically Sensitive Land) |
| ü | Capital property—cottages, securities, land, buildings, equipment at their FMV |
| ü | Listed personal property |
| ü | Inventory of a business |
| ü | Gift of certified cultural property to a designated institution or public authority under the Cultural Property Export and Import Act |
Federal and provincial credits can be claimed with official receipts:
| ü | Claim eligible amount of gifts made in the year or you can carry forward for 5 years |
| ü | Claim carried forward gifts first; then current year gifts |
| ü | Gifts in kind: donation appraisal must be from knowledgeable appraisers and follow Uniform Standards of Professional Appraisal Practice. |
| ü | Gifts of less than $1,000 usually do not require appraisal |
| ü | File Schedule 9 with your Federal tax return |
Deductibility:
| ü | 15% of the first $200; 29% thereafter plus provincial portion |
| ü | Up to 75% of net income can be given as charitable donations; 100% in year of death or immediately preceding year |
| ü | the individual’s total Crown gifts |
| ü | the individual’s total cultural gifts |
| ü | the individual’s total ecological gifts |
Start planning now to meet your charitable donation goals and the receiving the best tax deduction based on your charitable giving.
