Is there a way to donate to a charity straight out of an RRSP?
That way I get the RRSP tax deduction benefit and at same time can also contribute to a charity.
-
I believe, but cannot find a source, that you can do this but your donation would increase your taxable income just as a 'regular' RRSP withdrawal would do. You'd then get the donation tax credit. – ChrisInEdmonton Dec 2 '14 at 15:32
-
Oh boy, that is awful! – Victor123 Dec 2 '14 at 15:33
-
Note that the only likely alternative is that you can make the donation but then won't get the donation tax credit (as it's on money you haven't paid income tax on). Hopefully someone can find a supported answer. – ChrisInEdmonton Dec 2 '14 at 15:38
Add a comment
|
I'm pretty sure you can't do what you are asking, for exactly the reason you say - you would get a double tax deduction. The only way to get money out of an RRSP is to withdraw it and take the tax hit, whatever the reason for the withdrawl.
answered Dec 2 '14 at 20:41
-
Home Buyers Plan (HBP) and Lifelong Learning Plan (LLP) are counter examples to your second sentence ... although they are loans and the funds must be repaid to the plan, eventually. – Chris W. Rea Dec 3 '14 at 2:41
-
