Question

^{Leon Fiero has 2020 Net Income For Tax Purposes and Taxable Income of $70,400. Each week, without fail, he plays a nation-wide lottery. While over the years he has not had any winnings of consequence, his fortunes changed in 2019, when he won over $320,000. As he had hoped to do for many years, he donated $120,000 of these winnings to the Canadian Cancer Society in 2019. He chose to claim $15,000 of his donations in 2019.
Determine Mr. Fiero's maximum charitable donations tax credit for 2020. Until what year can he claim any unused portions of his 2019 donation?}

Answer 1

Leon Fiero had made donation of $120,000, which he can claim to reduce the taxable income. In 2019 itself, he had claimed $15,000, leaving balance of $105,000 which he can carry forward to next 5 years,i.e, until 2024, after which he can't claim any more benifit from this donation.

Leon Fiero taxable Income in 2020 is $70,400, so he can claim max $70,400 deduction out of $105,000 left and using the same will make his taxable income $0.

He still has $34,600 donation ($105,000-$70,400), which he can claim in next 4 years,i.e, until 2024.