January 16, 2013

Canada’s tax system provides incentives to encourage Canadians to donate to charities. A donation to the Alzheimer Society of B.C. helps those facing dementia build the confidence and skills to maintain quality of life and supports research for a cure.

Make the most of one or more of these five tax benefits available for your 2012 filing:

  1. Combine two or more years of charitable donations into one year (larger tax credits for donations over $200).
  2. Combine donations and/or claim them on the higher income spouse’s return.
  3. The maximum amount of donations that can be claimed in a year is 75 per cent of the net income. If donations have exceeded the limit, the credit can be carried forward five years.
  4. Consider charitable gifts in wills. The limit for donations in the year of death is 100 per cent of net income, and any excess can be carried back to the prior year’s income.
  5. Whenever possible, donate publicly traded securities-in-kind; in most cases the capital gains will not be taxable, and can provide a considerably higher benefit than a cash gift.

For more information on other strategies to consider when making a bequest in a Will, please see our Legacy Giving page and contact Gift Planning Officer Leona Desharnais.

Note: The information on this page can help facilitate discussions between you and your investment advisor. It is not intended as legal or tax advice. We encourage you to seek advice from a qualified professional.

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