Donation to Charity

[Pamela]

We wish to make a donation to the tsunami relief effort. Can we do this through a Canadian charity and claim it on our US taxes?

[nelsona]

Not unless you have Cdn income that you are reporting on your US tax return.

The US-Canada tax treaty allows US taxpayers to make deductible donations only to the extent that one has Cdn income to report, and that donation cannot exceed 50% (or 20% depending on the charity) of that specific income.

Given that the goal of your donation is not to specifically help a Cdn charity, it would be far simpler for you to donate thru a US agency.

You will, of course, have to itemize your 2005 deductions (2004 is past, now) in order to benefit from any deduction.

<i>nelsona non grata</i>

[MaggieA]

Not relevant to the tsunami relief effort, but re donations to Canadian charities, it may be useful to note that there's a specific exception to the rules cited above by Nelson, for Canadian universities attended by the taxpayer or close relative.

Donations to one's Canadian Alma Mater are deductible from US income just like a donation to a US charity. Canadian income is not required.

[nelsona]

Correct Maggie. Not relevant, but correct.

<i>nelsona non grata</i>

[MaggieA]

Re the original tsumani relief topic, the following link provides a large list of organizations currently accepting donations:

http://www.cnn.com/2004/WORLD/asiapcf/1 ... .aidsites/

[Pamela]

Thanks for your helpful comments, and the link to the list of agencies.

[Greg]

Just a side note, it's not to late to donate in 2005 and take a tax deduction for your 2004 Canadian tax return.Goverment is giving taxpayers until Jan 11th 2005 for donations in support of victims of last month’s tsunami in southern Asia.


http://www.fin.gc.ca/news05/05-001e.html

[nelsona]

Just a quick note to advise that IRS will also be allowing deductions for donations made in Jan 2005 for Tsunami relief on your 2004 tax return.

Details at irs.gov


<i>nelsona non grata</i>