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Know How Donating Can Help You Save Tax

Toongabbie accountants

After the world has been through rough times (and still going), many businesses have donated for helping the needy. But do you know you can get a return gift in terms of deductions from the ATO by making such donations? Well! That’s not happening in every gift or donation you do and businesses have been doing this for years to save taxes.

So, if you are new to the gifting and donation thing and want to know how it can help you in tax matters, here’s the guide you need.

  • To start with, you should know where and whom to donate. The ACNC Charity Registry has maintained a list of DGRs (Deductible Gift Recipients). It contains information and the purposes of all the charities that for you. And you need to donate to an organization listed as DGR to claim a deduction. However, if you are receiving a benefit or anything else in return for the donation, you might not be eligible for a deduction.
  • In addition, for your donation to be tax-deductible, it should be a minimum of $2. Moreover, there are limitations put by several charities on claimable donations.
  • Like every other expense, you need a valid receipt as proof that the deductible is genuine.
  •  You can only claim a deduction for property and money donated. There’s no deduction for any time or service you are providing as a part of your good gesture.

Besides, rules can differ for the property, shares, or goods you are donating. So, you should consult with accountants in Toongabbie to know more about eligible donations and how much you can claim on each.