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Fp ASKED FOR CLARIFICATION

Last year I contributed [money] to Freedom Party on the understanding that it would be 75% tax-creditable. However, when doing my taxes [the "simplified" form] I discovered that I could not get a property tax credit [for renting] as well as the political tax credit.

I studied the form's instructions carefully, and as far as I could tell, my interpretation was correct --- an individual cannot claim a political tax credit if they are receiving the property tax credit.

While you stress in your literature the tax credit for donations, perhaps you could clarify for me and others the correct tax implications for renters supporting you.

September, 1988
Jay T. Murray
LONDON, Ontario

EDITOR: Your inability to claim both property and political tax credits has nothing to do with your status as a renter, it has to do with the amount of provincial income tax that has been deducted from your earnings during the year in question.

If, for example, your combined provincial tax credits are equal to or exceed the actual amount of provincial [not federal] taxes you have paid [or owe], you will have 100% of your provincial taxes returned to you. Because it is a tax credit and not a tax subsidy, you can't collect more than the 100% you've already paid.

However, it would make us feel a lot better if you were contributing to Freedom Party for reasons over and above the ability to get a tax credit. Don't let your support be limited by the amount you can claim as a tax credit. It's a lot more comforting to know that people are supporting Freedom Party because they value their freedom. Tax credits make for great incentives, but the real value of your contribution lies in where it has been invested.

Originally published: Freedom Flyer 13



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