Generosity Pays Off
Your first $200 of donations made to a registered charity results in a 15 per cent federal tax savings. For every dollar over $200, you receive a 29 per cent tax credit.
Donation Limits
Your donations cannot exceed 75% of your net income. The only exception is in the year of death or the immediate preceding year and then donations can be 100% of net income.
If you are an investor it is important for you to know about capital gains and capital losses, and how they affect your taxes. Check out these commonly asked questions to find out more about how capital gains will affect you.
Can you explain capital gains tax?
A capital gain is the appreciation in value of a capital property, when sold from the date of purchase. Basically, if you bought a stock for $10 and you sell it for $15, you would have a $5 capital gain. A capital loss would be the opposite; a capital property that loses value when sold from the date of purchase.
Don’t we all want to know about tax deductions? It’s good to take advantage of any deductions that we possibly can. Learn more about these deductions by checking out the commonly asked tax questions below.
Are legal fees tax deductible?
Most legal fees are not tax deductible. Legal fees associated with recovering income such as spousal support or lost wages are deductible. Otherwise, legal fees are not deductible. A general rule of thumb is that if the settlement is taxable income, then the fees are deductible. If the settlement is not taxable (e.g. money from a personal injury settlement) then the legal fees are not deductible.
