inTAXicating Helpful Tax Tip: Hold Your Change!

Have you ever walked into a store, paid for something with cash, then dumped some of your change into one of the donation tins / boxes which are situated on the counter?

It feels good to give some change to those in need.biz name official

If, however, you are someone who often donates in this manner, I think you should stop doing that immediately, and here is why:

When you drop your change into those donation bins, the money goes to the charity advertised, that we know for certain, but did you know that institution that has the tins, usually turns over that money to the charity and in turn, they receive a donation receipt which reduces their tax payable.

You are MUCH better off holding on to your change and then making a donation online to a registered Canadian Charity (The CRA provides a list of registered charities you might want to bookmark, here) and claiming the tax receipt for yourself.

It might seem like an insignificant adjustment to make, however, every dollar counts and it’s better to have the money in your pocket than in someone else’s!

Plus, the receipts add up over time, and before you know it. you can have a considerable amount of credits built up to use to reduce an amount owing or increase a refund.

Do you have to report a donation in the year you receive a receipt?

The CRA says, No.

You can carry forward donations you do not claim in the current year and claim them on your return for any of the next five years. But, you can only claim donations once. Also, you have to claim donations you carried forward from a previous year before you claim donations made in the current year. For donations of ecologically sensitive land made after February 10, 2014, the carry-forward period is ten years.

inTAXicating Tax Services is a full-service Canadian Tax Solutions company which can help you with and Tax needs you have ranging from Accounting, Bookkeeping, Audits, Assessments, and we specialize in Collections and helping you understand where you stand with the CRA in an open and honest manner.  We value your hard earned money as much as you do, and we don’t want to see you throwing it away unnecessarily.

Visit us at http://www.intaxicating.ca, or find us on Facebook, Twitter, or for tax tips, come to our blog at http://www.intaxicating.wordpress.com.

If you want to see what sets us apart from everyone else, check out our LinkedIn account and that of our Director, Warren Orlans, and see what real CRA experience can do to help alleviate your fears and concerns.

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Author: Warren Orlans

Welcome to the blog for Intaxicating Tax Services, www.intaxicating.ca. My name is Warren Orlans and I am the owner of inTAXicating Tax Services. With over 17-years experience in the taxation industry, 11 of them working for the Canada Revenue Agency (CRA), and the rest working in the private sector at large financial institutions responsible for resolving tax issues for corporations and individuals and the Canadian lead for a large US bank on FATCA implementation. My tax career began pretty much out of university at the CRA, in Collections, where I moved up, across, over and up again through their division with stops in Enforcement, Taxpayer Relief (then Fairness), Audit, Directors Liability, Training, Mentoring, GST, GST/HST, Payroll, Corporate Tax, Personal tax, and probably much more. If you have a collections, compliance or audit issue with the CRA, MRQ, IRS or with the CRTC, WSIB or any aspect of those agencies, inTAXicating is the place you need to contact. inTAXicating Tax Services has strategic partnerships which allows my team to include amazing tax lawyers, insolvency practitioners, mortgage brokers, debt counselling experts and much more. When dealing with governments, knowledge is power. We possess strong understanding of government so we know what the next step is before the government does. When you have a collections problem with the CRA, do you hire a graphic artist? No, you get a former collector who trained the staff, and who worked as a resource officer for 5 years. Then you know you are on the right track to resolving your tax problem(s). Others offer suggestions. We offer solutions! info@intaxicating.ca

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