Canada: Charitable planning tax opportunities for 2021

Carefully planning charitable giving may improve a taxpayer’s personal tax situation for 2021

Carefully planning charitable giving may improve a taxpayer’s personal tax situation

How taxpayers make a donation may affect the tax savings received—whether a cash donation or a tax-effective gift of property (known as a "gift in kind"). Such charitable gifts must be made by 31 December 2021 to claim the donation tax credit on the 2021 tax return.

Generally, after-tax cost for a $1,000* cash donation in 2021 can range from a low of $460 to a high of $555 if the taxpayers are a “high income earner” with income of more than $216,511, and from a low of $500 to a high of $595 if their income is at or below that amount (depending on province where the taxpayer is a resident). Donating property such as securities, artwork, or real estate—instead of a gift of cash—may increase the tax benefits of the donation.

Read a November 2021 report [PDF 211 KB] prepared by the KPMG member firm in Canada

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