Canada Customs and Revenue Agency allows taxpayers and their spouses to transfer charitable donation claims between each other as they wish.

TIP:  In most cases allocating all charitable donations to one spouse will provide the best result.

An individual is allowed to claim the lower of:

• All donations made in the current year plus any donations not claimed in the past five years.
• 75% of his / her net income for the current year (line 236 of the tax return).

The first $200 of donations receives a tax credit calculated at the lowest marginal tax rate (marginal tax rates vary depending on your province of residence).  Donations in excess of $200 receive a credit calculated at the highest marginal rate.

The above provides general information only.  It should not be regarded or relied upon as accounting or taxation advice or opinions.  Logan Katz LLP Chartered Accountants would be pleased to provide more information or specific advice on matters of interest to you.

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