You reduce your taxes If you donate to a charity
Previously I discussed how you can reduce your taxes by making a political contribution.
Well, most of us aren’t exactly enamoured by Canadian politics and political parties, so we need another way to reduce our taxes.
The most noble way of reducing your taxes is by donating to a charity. This could be something for helping the poor, medical research, or another form of approved charity.
Charitable donations are considered a non-refundable tax credit.
Some helpful links:
Financial sovereignty is attained by understanding that debt is financial cancer, eating away at your future
There are only four situations that I can condone the use of debt:
1) Purchase of a home
It is very difficult to just show up and pay cash for a home, especially as a first-time buyer. However, you do not want to be over leveraged and end up underwater with the loan if housing prices ever take a dive. I recommend the 20% downpayment, or at least enough to be sure that you do not have to buy mortgage insurance. Also, be sure that you could handle a raise in interest rates if you intend to take a variable rate mortgage.
One of the most patriotic things you can do is reducing your taxes. Yes I mean that – let me explain: This prevents the tax revenue from growing as fast and helps to prevent the various governments from getting as much of a taste of your money as possible. Because once they taste it they will never let it go, and will deploy this money into more wasteful programs. Wasteful spending can’t grow as fast if the tax base doesn’t. See, I like my logic.
Political contributions are a decent way to reduce your taxes. But of course you do have to have a particular political party that you support and it is real money that you are giving.
I have some more research to do on this topic, but it appears that you can contribute a few hundred dollars each year and receive a decent tax credit.
Some links that I have used for research: