Extension of Donation Deadline – Gifts in Kind Don’t Qualify

Last week Finance Canada released draft legislation to confirm the extension of the charitable donation deadline for the 2024 tax year to February 28, 2025. But it’s not for all donations. The fine print in this legislation matters before going ahead and making the donation. Check it out:

One of the many changes for this tax season 2022, is that 2021 tax refunds will be lower for thousands of taxpayers that qualified for the “Climate Action Incentive” (CAI). Prior to 2021, the CAI was a refundable tax credit similar to the Canada Workers Benefit or the Canada Training Credit. In all these cases, these credits constituted a tax-free cash benefit that either increased a tax refund or reduced the net tax liability for taxpayers.

Don’t miss this opportunity to take Canada’s most up-to-date and comprehensive Advanced T1 Tax Update Course for Professional Tax Accounting firms and their new and returning staff who will file 2021 T1 Returns. This is Canada’s #1 tax training program for busy practice owners who need to recruit and train staff in time for this tax season.  No travel, no time zone issues, available 24/7 online with outstanding expert instructor-led presentations and support. Leave the training to Knowledge Bureau to make sure you are ready for the busy season, at a special time-limited fee, too.

It’s been almost two years of personal physical, mental and emotional life triggers, coupled with many economic and financial changes.  How can just one financial professional ensure that their client's holistic wealth management plan is focused on tax efficient wealth sustainability with so many triggers at once? Join the Society of Real Wealth Managers™ and seven special guests for the next Meeting of the Minds: 360 Degree Trigger Tour on February 2 at 10 AM CST.   Register now for this complimentary educational event!

On January 14, 2022 the CRA confirmed that trust tax filings for trusts with year-end that falls on or after December 31, 2021 will not be required under new disclosure rules because legislation to enable them and the severe penalties for failure to file a new schedule has not been enacted into law.  For the time being, tax pros will follow the existing rules until supporting legislation receives Royal Assent. There are some interesting details within the proposed rules, which will likely affect next year’s returns.

Quebec is looking for a health contribution for adults who refuse to be vaccinated for non-medical reasons, as half of the COVID-19 beds in Quebec are taken up by unvaccinated Quebecers. Quebec is proposing to implement a vaccine tax, and tax the unvaccinated.  But can a province levy such a tax?

Want to start your year by doing something good?  Make it a commitment to give more to charity. Typically, tax deductible gifts are cash; however, don’t forget you may also give gifts in kind and receive a donation receipt. It’s the gift that keeps giving back, Working with an MFA-P™, a professional trained in strategic philanthropy can help.  Here are some tax tips to consider: