Authorities places out draft invoice whereas CRA offers steering on which presents are eligible
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The federal government and the Canada Income Company (CRA) gave additional particulars this week on the extension of the charitable donation deadline for the 2024 tax yr.
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In late December, the federal authorities introduced that it intends to amend the Earnings Tax Act to increase the 2024 charitable donation deadline till February 28, 2025. The extension was meant to “mitigate the impacts of the four-week Canada Submit mail stoppage,” since many charities depend on mass mailing campaigns every December, and donor response to these solicitations could have been considerably affected because of the postal strike.
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On January 23 the Division of Finance launched draft laws (and associated explanatory notes) to amend the Earnings Tax Act to formally lengthen the deadline for making donations eligible for tax assist within the 2024 tax yr to February 28.
Parliament is presently not in session, and voters could face a spring election, probably killing any payments ready to be handed. However, with the intention to “assist present certainty as we head into tax season” the CRA in a launch confirmed it would go forward with administering the 2024 deadline extension for charitable donations. Administering proposed laws, somewhat than ready till it’s handed, is in keeping with its longstanding observe.
The draft laws offered additional particulars on how the prolonged deadline might be utilized, and which sorts of donations might be eligible. Particularly, the federal government stated that solely donations made within the type of money or cheque, bank card, cash order or digital cost will qualify for the extension. Notably, presents made by way of payroll deduction and presents of property or appreciated securities received’t qualify for the extension.
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People have the selection of claiming eligible presents made as much as February 28 on their 2024 private earnings tax return, their 2025 return, or in the course of the regular five-year carryforward interval.
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Firms which have a taxation yr that ended after Nov. 14, 2024, and earlier than January 1 are additionally eligible for the extension for eligible donations made in the course of the extension interval.
The CRA famous that charities should not required to difficulty official donation receipts particular to the extension interval, however they might want to take action as a courtesy to their donors.
Jamie Golombek, FCPA, FCA, CFP, CLU, TEP, is the managing director, Tax & Property Planning with CIBC Personal Wealth in Toronto. Jamie.Golombek@cibc.com.
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