During this tax season, I thought it would be appropriate to share with you a few tips on claiming your charitable donation/s.
- Make sure you have all of your official donation receipts, if not contact the charity and ask them to reissue you a new one.
- Determine which spouse should claim the donation. Gifts may be claimed either by the person who made the gift or by the spouse or common-law partner of the person who made the gift.
- Know your limits. The maximum that may be claimed is 75% of an individual’s net income for the year.
- Carry forward. Donations exceeding your annual donation claim limit can be carried forward and claimed in any of the five subsequent years.
- 5. If you donated securities, the donations of publicly listed securities are generally receipted at fair market value on the date of the donation. The entire value is eligible for a deduction. In addition to the tax credit, NO tax on any capital gain applies to gifts of publicly listed securities given to charities.
- Company’s that donate can receive a deduction. Company donations are treated as tax deductions whereas individual and trust donations are treated as tax credits. A deduction reduces taxable income for companies and the limits for the deduction are the same as above for individuals.
National Fund Development Manager