Looking to make a donation to charity? When you give a gift or make a contribution to an not-for-profit organization. Some donations could be claimed as tax deductions on your individual tax return. The amount you can claim will depend on the type of donation you make.
What is a gift?
- A voluntary transfer of money or property
- The donor does not expect anything in return for the gift
- The donor does not materially benefit from the gift.
To claim a tax deduction for a gift, it must meet four conditions:
- The gift must be made to a deductible gift recipients (DGRs). DGRs mean organisations who are entitled to receive tax deductible gifts.
- Must be a genuine gift
- The gift must be money or property, which includes financial assets such as shares.
- The gift must comply with any relevant gift conditions.
How much to claim
The amount you can claim depends on the type of gift. For gifts of money, it is the amount of the gift, but it must be $2 or more. For gifts of property, there are different rules, depending on the type, and value of the property.
You can claim a tax deduction for most gifts in the tax return for the income year. You can also elect to spread the tax deduction over five income years in certain circumstances. However, you can’t claim a tax deduction for donations made to crowdfunding platforms if they are not a DGR. If you have any enquiry, please contact our Business Mantra experts. We can help you with all of your tax issues. Please stay connected and we shall update more on businesses. You can call us on (08)9242 3555 or email us at firstname.lastname@example.org.