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Nonprofit Law/Canada/USA charitable deduction


I am a US citizen. I plan to donate to a Canadian Charity (it has a sister charity in USA which is 501c3 so I assume IRS will also treat is as a tax exempt entity. I may have to ask them to do some paper work with IRS to get certification) some private mining Company Canadian stocks which are subject to Canadian cap gains tax. I believe at the same time I will be eligible to get 29% tax credit on 75% of of my canadian sourced income from canadian revenue agency. So the tax consequence will be a wash from Canadian tax point of view. Is the a correct conclusion?
Other question is, will I also be able to claim charitable deduction on US tax return? I believe limit will be 50% of the Canadian sourced income. Will I be able to carry forward unused deduction upto 5 years on USA return?

I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. You are asking a question about your Canadian personal income taxes and about your U.S. personal income taxes.  But I will direct you to IRS Publication 597 "Information on the United States Canada Income Tax Treaty"  which is available at:

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic


I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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