Posted under: Business Owners, Charitable Giving, News
The federal government recently announced an extension to the 2024 charitable donation deadline, allowing donations made up to February 28, 2025, to be claimed on 2024 tax returns. This move aims to address delays caused by the Canada Post strike, providing charities and donors extra time to process contributions.
While this measure was welcomed by the charitable sector, key questions remain. For instance, will the extension cover non-cash gifts like securities or cultural property? And will it apply to corporate donors with off-calendar fiscal years?
And what will be the tax treatment for those who choose to donate a life insurance policy to a charity? Fair Market Valuations of Life Insurance (FMV) have proven to be a powerful tool for these types of donations, helping to potentially increase the tax deduction for the donor.
Additionally, with Parliament prorogued until March 24, there’s uncertainty about whether the required legislation will pass in time. With that said, many experts agree that given the fact that the nature is philanthropic, it is likely that the measure for 2024 tax deductions would be supported; though this is not guaranteed.
This extension provides an opportunity for donors to maximize their impact, but clarity is still needed on several aspects. Stay tuned for further updates.
Founded in 1995, GBL is a leading provider of retirement, health, and cross-border solutions for business owners, and corporate pension administration across Canada. With offices in Calgary and Toronto, we have served 7,000+ clients, have 3,000+ Financial/Investment Advisors in our network, actively manage 2,000+ IPPs, RCAs, and SERPs. We have created 1,000+ HBPs and 3,000+ FMVs. We’re known for our industry leading client service and administration, as well as our top-notch actuarial group. Contact us today at [email protected] or 403.249.1820 and follow us on LinkedIn to learn how we can help Build Your Future. www.gblinc.ca
