We just financed an affordable housing complex where we donated $132,000 and we will get tax credits in return.

I have never handled the reporting of one of these deals for CRA before so I wanted to verify that I should report this as an investment, correct?

Are there any caveats I need to look for in this type of transaction?

Thanks.

We got CRA investment credit for these types of transactions

Did you make a loan or just the donation? If you did both, then you could probably get credit in both areas for the amount of each.

We just made the donation as far as I know. I was just informed yesterday about this situation and am awaiting more information. Thanks.

oh...what we do is buy the tax credits and that's how we got investment credit

It's important to know whether the $132000 is really a donation, which is expensed, or a bookable investment. From what was described, it sounds like this was a purchase of low-income housing tax credits, which would be a bookable investment.

While donations and bookable investments may be qualified investments, there is a difference in the CRA credit each will garner for you. A donation only gets you one time credit for donations in the CRA evaluation period in which they were made. Bookable investments are given credit into future evaluation periods in which they are still on the books. AR.

AR, it's great having you here.
When I get the full info, I will determine the appropriate reporting.
Thanks again.