As the saying goes, there are two things in life that are unavoidable: death and taxes. Since you can't give a friend a break from death, the next best thing is to give him or her a break from taxes. You can do this by making a charitable donation in your friend's name and giving it to him or her as a gift instead of theater tickets or a gift certificate for cottage rentals in PEI. If you're thinking of going this route for gifts, here's some more information.
The biggest thing to remember is that not all donations are tax deductible, so check before donating that this gift will come with a tax break. Most donations to charities qualify, such as donations to churches, public services, or non profit groups, but organizations that are not themselves exempt from paying taxes don't count. It also doesn't count if you get anything for your donation, such as the chance to win dental implants in Mississauga or a trip to Tahiti.
Another thing to think about when giving to charities on another person's behalf is that you need to take that person's preferences into account when choosing the charity. Ideally you would want to make a donation to a cause your friend already supports. If you only know each other from marketing Thornhill homes for sale and not on a personal level, go with a popular cause it is unlikely anyone would object to, like cancer research or disaster relief.
Charitable donations are also a great gift to give yourself, especially if you give in affordable increments throughout the year. Then you'll be giving yourself a nice little surprise in April when tax time comes along and you find that your donations added up make a nice little dent against the cost of Toronto condo listings and your income taxes.
Make sure to save the receipt when you make a donation, as you need them to claim your tax exemption. In Canada, you can claim the deduction on the year the donation was given or carry it forward for up to five years. You can also donate up to 75% of your net income, so if you're still making an obscene amount of money even after the Class Action Canada payout, you can ease your taxes by disposing of the extra money charitably. Remember though: deductions aren't automatic. You must claim them on your T1.
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