As you assess your tax situation for 2018, you may be thinking about charitable donations.
As you begin to assess your personal tax situation for 2018, you may also be thinking about making charitable donations this year. Whether you ultimately choose a cash donation or make a tax-effective gift of property (known as a "gift in kind"), it's important to carefully plan your charitable giving so that you can make the most of available tax incentives while ensuring that your philanthropic goals are met. Whatever you choose, you'll have to make any charitable gifts by December 31, 2018 if you want to claim the donation tax credit on your 2018 tax return.
Generally, your after-tax cost for a $1,000 cash donation in 2018 can range from a low of $460 to a high of $525 if you are a "high income earner" with income over $205,842, and from a low of $500 to a high of $565 if your income is below that amount (depending on your province of residence). Donating property such as securities, artwork, real estate or a life insurance policy instead of cash may increase the tax benefits of the donation to you and the value of the donation to the charity.
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