It’s tax season! And if you’re like a lot of Canadians, you could use some extra tax deductions this year. Charitable donations are a great way to get those deductions (in Canada they’re actually tax credits, but let’s not get caught up in details). The problem is, it’s too late to make any additional donations to help with your 2016 taxes. Which leads me to the first point in our top tax tips for 2017:
Make a budget for charitable giving and stick to it. Figure out what you can afford up front and an amount that will generate a desirable tax credit. Use this CRA calculator if you need help doing the math. Recurring monthly gifts into your Chimp Account are a great way to save regularly until you know where and when you want to give the money, and your tax receipts are automatically generated and saved.
Expand Your Mind
There are other forms of donations besides cash that you can make in 2017 that will offset your 2018 tax bill. Property and securities can be donated as well - maybe that vacation property you never use could be generating more than just cobwebs. Even complex assets like art can be donated to charity. Picasso many tax credits!
‘Til Death and Taxes Do Us Part
Don’t forget that getting married is about more than just deciding who takes out the garbage. Either spouse in a marriage or common law relationship can claim donations made by the couple - lump all of your donations together for maximum tax credit impact. It doesn’t matter which person claims it.
If you have a complex tax situation, are too busy, or just can’t be bothered to puzzle through hundreds of pages of tax code, it might be time to get in touch with a professional. Tax advisors are trained to find deductions and credits that might slip past a layperson. It can’t hurt to ask for a little help.
For more information on how Chimp can help you plan your charitable giving, contact: