Improving your tax position by helping others

This past week I received an email from one of the first people I met professionally when I arrived in Victoria.

Susan Low of Directis Consulting is an amazing person.  Not only is she a business owner, a competitive rower, Mom and Wife, she is the Green Party Candidate for Esquimalt – Royal Roads in next spring’s provincial election.

Susan’s email describes the campaign and is looking for a monetary contribution so her team can get the campaign plans underway.  In the note Susan reminded the readers of the value to them through the tax credit each will receive on their tax return.  A contribution of $100 equals a reduction of $75 in taxes.

A donation to a registered charity will realize a reduction in taxes on your personal tax return through a non-refundable tax credit.  Donations to a registered charity up to $200 receive a credit at a rate of 5.06% and amounts over this level the credit is at a rate of 14.7%, for residents of BC.  Taxpayers must list the individual receipts on Schedule 9 of their personal tax return and should ensure the receipts include the following information:

  • the charity’s name and registration number, date, serial number, amount donated, donor’s name, and be signed on behalf of the organization
  • the website address of the Canada Revenue Agency http://www.cra-arc.gc.ca/charities/

Anyone can look up information on this website about charities in general, or any specific registered charity.

Always keep the receipts.  If you are paper filing your return, the receipts must be included when mailing it in.  If we are submitting your return electronically (EFILE), your receipts will be attached to the paper copy we provide to you.  After the end of April CRA holds a lottery of sorts….  If you are one of the lucky people selected, you will be asked to send in your receipts to prove the donations claimed on your return.

Taxpayers can make donations up to 75% of their income.  Donations over this level can be carried forward for five years.

This is just a quick overview of how helping others can improve your tax position.  If you have any questions on your specific situation and how a contribution or donation will impact your tax position, please give us a call.

Choosing a charity of choice or several makes a difference in the lives of the folks needing the support of those organizations.

I am Colleen from Security House Accounting Services, Give Us Your Books – Take Back Your Life!

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