Do you have a favorite charity or cause that you support or planning on to? In Canada, you can receive as much as 53% back through charity tax deductions.
Wondering if you should donate through your corporation or donate personally? Find the answer in this video.
If you prefer reading, you can find the transcription below the video.
charity donations in canada
Good afternoon everyone. It’s Irfanali with RMI Professional Corporation once
again. I hope everyone’s had a fantastic couple of weeks.
I know we’ve been busy plugging away as always throughout the year here at RMI. Today, I wanted to touch on a different topic and that would be donations.
So, one of the most common questions I get from our clients is – should I donate through my corporation or should I donate personally?
tax deductions on donations
And with this one, the answer is actually fairly simple.
It is better to donate on the personal side as long as you’ve not used up any of your limits.
So, for example, in Canada you can donate up to 75% of your personal income. And if you do a personal donation and you give above $200 you actually get up to 53% credit back from the government on your taxes.
So as long as you haven’t used up any of these credits it for sure makes more sense for you to pull money out of your corporation, if you need to. And do donations on the personal side.