Jake Baxter donated $100,000 in cash to a Canadian registered charity.His Net Income For Tax Purposes for the year is $120,000.Calculate Jake's maximum federal tax credit for charitable gifts.

Question

Quizplus · Accepted Answer

The maximum federal tax credit for charitable donations in Canada is calculated as 15% on the first $200 and 29% on the amount exceeding $200. Therefore, for a $100,000 donation, the credit is 15% of $200 plus 29% of $99,800, which equals $26,072.

Jake Baxter Donated $100,000 in Cash to a Canadian Registered