Tax Credit Information

YOUR GIFT TO CUPS IS A WIN-WIN: Tax Incentives for Your Gift

Giving to CUPS benefits you AND the community. Your donation of cash, securities, flow through shares and other assets is eligible for charitable tax credits, which can reduce the federal and provincial income tax you pay each year.

Alberta’s tax credit on annual charitable donations over $200 is now 21% – one of the highest tax credits in Canada. When added to the federal tax credit of 29%, Albertans receive a 50% non-refundable tax credit on those donations. The first $200 in charitable donations continues to receive an Alberta tax credit of 10% and a federal tax credit of 15%. This tax credit is not a refund and only 75% of a donor’s income can be claimed.

The following charts illustrate how the Alberta charitable tax credit combines with the federal tax credit to provide the optimum benefit to Alberta taxpayers and the charities you support. Alternatively, please visit Canada Revenue Agency’s Charitable donation tax credit estimator at the link below.

Charitable donation tax credit estimator

Annual Donations Under $200

Alberta and Federal Charitable Tax Credit Table

Donation Amount Provincial Tax Credit 10%% Federal Tax Credit 15% Total Tax Credit After Tax Credit Cost of the Donation
$100 $10 $15 $25 $75
$200 $20 $30 $50 $150

Annual Donations Over $200

Alberta and Federal Charitable Tax Credit Table

Donation Amount* Provincial Tax Credit 21% Federal Tax Credit 29% Total Tax Credit After Tax Credit Cost of the Donation
$250 $30.50 $44.50 $75 $175
$500 $83 $117 $200 $300
$1,000 $188 $262 $450 $550
$2,000 $398 $552 $950 $1,050
$5,000 $1,028 $1,422 $2,450 $2,550
$10,000 $2,078 $2,872 $4,950 $5,050
$25,000 $5,228 $7,222 $12,450 $12,550
$50,000 $10,478 $14,472 $24,950 $25,050
$100,000 $20,978 $28,972 $49,950 $50,050

*Donations of more than $200: All gifts to charities over the initial $200 entitle you to a tax credit on taxes paid of 50% (29% federal tax credit plus 21% Alberta provincial tax credit).

Donating publicly traded securities

Additional tax benefits are available for donations of publicly traded securities. In the federal budget of May 2006, the capital gains tax was eliminated altogether on gifts of securities to registered charities. In addition, you will receive a tax receipt for the full value of the shares you have donated. Previously, donors paid Capital Gains Tax on 25% of the gain when they donated securities.

When you give goods, you are also eligible for a similar tax credits. A fair market value of the goods must be determined by the donor and/or charitable organization.

FOR MORE INFORMATION CONTACT: Patricia Mestek – Director, Fund Development patriciam@cupscalgary.com

 

DONATIONS OF SECURITIES

PERSONAL DONATION*

Donating securities affords several benefits including; ease of giving, preferential tax treatment, and clear documentation for Canada Customs and Revenue Agency.

  • Donations of securities results in a lower tax cost than selling the securities and donating cash.
  • You will receive a tax receipt for the fair market value of your gift.
  • There is no tax on capital gain triggered by your gift.
Donate Securities Directly to Charity Sell Securities and Donate Proceeds to Charity Cash Donation (after tax $)
Value of Donation $10,000 $10,000 $10,000
Adjusted Cost Base $2,000 $2,000 n/a
Capital Gain $8,000 $8,000 n/a
Capital Gain Inclusion Rate $ – 50%
Taxable Capital Gain $ – $4,000
Donation Tax Credit (assuming 50% credit rate x donation amount) $5,000 $5,000 $5,000
Tax on Capital Gain (assuming 50% income tax rate x taxable capital gain) $ – $2,000 n/a
NET TAX SAVINGS $5,000 $3,000 $5,000

CORPORATE DONATION*

Charitable Gifting Through Private Corporation

Cost of Flow Through Shares (FTS)Acquired $10,000.00
Tax Savings on FTS deduction $(3,900.00)
Tax on Transfer of FTS to Private Co. $ –
Tax Savings on Donation of Shares by Private Co. (Full Market Value of FTS = $10,000) $(3,250.00)
Amount Added to Private Co.’s Capital Dividend Account
Personal Tax Savings on Receipt of Capital Dividend Account $(2,500)
After Tax Cost of Donation $350

 

CUPS (Calgary Urban Project Society) is a registered charitable organization with the Canadian Revenue Agency: CRN 134-112-515-RR0001.

Parallels H-Sphere

Error 404: File Not Found

The requested page is not found. This may happen due to the following reasons:

  • Page or file is outdated, renamed, moved, or does not exist.
  • You typed the address incorrectly, like http://www.example.com/pgae.html instead of http://www.example.com/page.html

Please contact your webmaster if you are not sure what goes wrong.





This page is autogenerated by Parallels
Parallels
® H-Sphere