FIRSTMATE BLOG: CAPTAINS LOG

Donation tax credits for Individuals21.05.2014

Question
Our client, an individual, has $45,000 of income for the 2013 income year. However the client has brought forward losses of $50,000, making his 2013 taxable income nil.

Can our client claim a donation tax credit even though his taxable income for 2013 is nil?

Answer
The amount of the donation tax credit must not be more than the taxpayer’s taxable income. Taxable income is determined by offsetting available net losses against net income.

Accordingly, as the client’s taxable income is nil, no donation tax credit is available.

back