Enter the amount of the donation. Donations generate non-refundable credits. On the first $100 of donations, the credit is at the lowest tax rate (federally and provincially). On the remainder of donations, the credit is generally at the highest tax rate (Alberta provides a higher rate).
Where the donation does not save any taxes because the taxpayer's taxable income is too small, they can be saved for up to five years to be claimed in a year when there are more taxes payable and thus generate more benefit.
Donations are limited to 75% of the taxpayer's net income in most cases. A warning will be posted if the donation is more than 75% of taxable income.
Where the gift is of publicly traded shares and the capital gain on the gift is already included in taxable income, enter the gain here as gains on the donation of publicly traded shares is zero. The taxable income will be adjusted to remove the gain.
The table below the inputs shows the taxes payable (based on taxable income) at the federal and provincial level, before and after the donation. No credits are assumed other than the basic personal amount. Additional credits will reduce taxes both before and after the donation so they will not affect the savings due to the donation.
The tax savings are shown at each level as well as the net cost of the gift based on the actual gift less the taxes saved.