Should I donate from my small business corporation or personally?

Allan Madan, CA

Oct 11, 2012

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Ideally its beneficial to donate from your corporation as it reduces your taxable income by the full amount donated saving you 15.5% income tax at the corporate tax rate. If you donate personally you’ll receive a tax credit for 15% on the first $200 dollars of donation and 29% above that. Therefore, if your personal marginal tax rate is 30% and above you should would want to donate out of the corporation.

Disclaimer

The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.

ABOUT THE AUTHOR

ALLAN MADAN

CA.CPA.CGA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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