Dianne has donated $10,000 to a registered charity and deductible gift recipient. She will save $4,500 in tax as a result of this donation. How will this donation be treated for tax purposes?

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Quizplus · Accepted Answer

This donation is an example of tax planning, where an individual makes a donation to a registered charity, which is legally deductible, thereby reducing their taxable income and the amount of tax owed. This is a legitimate strategy for reducing tax liability.

Dianne Has Donated $10,000 to a Registered Charity and Deductible