Authorities places out draft invoice whereas CRA offers steering on which presents are eligible
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The federal government and the Canada Revenue Agency (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 announced that it intends to amend the Income 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 Post mail stoppage,” since many charities depend on mass mailing campaigns every December, and donor response to these solicitations might have been considerably affected as a result of postal strike.
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On January 23 the Department of Finance launched draft laws (and associated explanatory notes) to amend the Earnings Tax Act to formally prolong the deadline for making donations eligible for tax assist within the 2024 tax yr to February 28.
Parliament is at present not in session, and voters might face a spring election, doubtlessly killing any payments ready to be handed. However, so as to “assist present certainty as we head into tax season” the CRA in a launch confirmed it is going to go forward with administering the 2024 deadline extension for charitable donations. Administering proposed laws, somewhat than ready till it’s handed, is according to its longstanding observe.
The draft laws offered additional particulars on how the prolonged deadline shall be utilized, and which varieties of donations shall be eligible. Particularly, the federal government mentioned that solely donations made within the type of money or cheque, bank card, cash order or digital fee 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 through the regular five-year carryforward interval.
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Companies 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 through the extension interval.
The CRA famous that charities aren’t required to situation 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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