It is the time of year that we must 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:
Tax deductible charitable gifts include the following:
Federal and provincial credits can be claimed with official receipts:
Gifts can be made to:
Note: Gifts to Canada include monetary gifts made directly to the federal Debt Servicing and Reduction Account, sent to the Receiver General requesting this. A tax deductible receipt will be issued.
Special Rules: Gifts of capital property:
So start planning now to meet your charitable donation goals and the receiving the best tax deduction based on your charitable giving.
Attend the Knowledge Bureau's January 2009 Line by Line Tax Update and Debt Management Workshop in cities across Canada for more tax planning ideas and information on recent changes to the tax laws.