What are the limits on charitable donation deductions for a Canadian business?
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What are the limits on charitable donation deductions for a Canadian business?

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    Avatar of Robert
    Robert
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    We have a question from a client:
     
    What are the limits on charitable donation deductions for a Canadian business?

    #5022
    Avatar of Robert
    Robert
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    If you are a sole proprietorship or partnership, you can claim charitable donations up to 75% of the total net income on the T1 Personal Tax Return. However, the total claim cannot create a net loss or increase a net loss – any unused amounts can be carried forward for up to five taxation years. These rules also apply for corporations. When an individual dies, the charitable donation deduction limit is 100% of his or her net income in the current taxation year and the year before.

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