Which of the following statements with respect to charitable donations is NOT co

Question

Which of the following statements with respect to charitable donations is NOT correct?

Select one:

a.

When making a gift of non-depreciable capital property with a fair market value in excess of its capital cost, it is always advisable to elect the fair market value amount for the gift.

b.

Amounts of eligible donations that are not used during the current year can be carried forward for up to 5 years.

c.

The basis for a charitable donations tax credit for the current year can never exceed 75 percent on the individual’s Net Income For Tax Purposes.

d.

Any capital gain arising on gifts of ecologically sensitive land are deemed to be nil.

KEEP IN MIND THIS IS CANADIAN TAX.

Explanation / Answer

statement C i.e. The basis for a charitable donations tax credit for the current year can never exceed 75 percent on the individual’s Net Income For Tax Purposes beacause Except for donations of cultural or ecologically sensitive land, total donations are eligible for a tax credit provided they do not exceed 75 per cent of a person’s net income.

If you do make such a gift of ecologically sensitive land or easement/covenant, the value of the donation for tax credit calculation can be 100 per cent of your net income in the year of donation and not 75 per cent as in the case of a normal donation

thus it is Not Correct to say that The basis for a charitable donations tax credit for the current year can never exceed 75 percent on the individual’s Net Income For Tax Purposes

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