On January 23, 2025, the Department of Finance released draft legislation (and related explanatory notes) to amend the Income Tax Act to extend the deadline for making donations eligible for tax support in the 2024 tax year to February 28, 2025.
In response to the postal strike, the draft legislation proposes to extend the deadline for making donations eligible for deduction in the 2024 tax year, until February 28, 2025. The proposals provide that gifts made before March of 2025 are deemed to have been made in the taxpayer’s taxation year that ends after November 14, 2024 and before 2025. For individuals, this ensures the donation will fall in the 2024 taxation year.
Corporations and graduated rate estates, with a tax year ending after November 14, 2024 and on or before December 31, 2024, are also eligible for the extension.
The gift must be made in the form of cash or transferred by way of cheque, credit card, money order or electronic payment. The donation of securities is not eligible for the extension. Furthermore, gifts made through payroll deductions and by individuals will (for deaths after 2024), do not qualify for the extension as well.
These proposals are not law, but the CRA has confirmed that it will proceed with administering the 2024 deadline extension for charitable donations. The CRA is administering this proposed legislation, consistent with its longstanding practice. Taxpayers should keep receipts if requested by CRA.
Charities will continue to issue donation receipts according to the receipting rules. Also, charities will continue to report tax-receipted revenue on their 2024 and 2025 Charity Information Returns as they normally would. The donation extension will not impact how they report. For example, they will not have to report donations made from January 1, 2025 to February 28, 2025 in their 2024 Charity Information Return. It will be included in their 2025 filing even though the donation can be deducted in 2024 by the donor.
Resources
CRA Announcement – Confirmation of Approach
CRA Publication – Issuing Receipts
CRA Publication – Receipts and Deadline Extension
The information in this article is of a general nature and is in summary form. Contact one of our tax professionals to discuss these matters in the context of your situation before acting upon such information
