Charitable Estate Gift & Tax Planning

Changes in tax laws means that the more you give, the more you save. For donations of up to $200 you now get a 25% tax credit (in combined provincial and federal tax credits). Any donations over $200 result in a 50% tax credit (in combined provincial and federal tax credits).

When you give a donation in kind, you now get better tax treatment. You can elect anywhere between your cost and fair market value. If you elect to donate based upon your fair market value, you can now deduct up to 75% of your income vs. the 20% that was previously allowable. Therefore in almost all circumstances it is better to donate the full market value of your donation in kind. This change in the law is particularly important for a very large donation in kind.

There are also particular tax benefits if you donated shares to us in publicly traded companies. These shares, which are traded on the stock market, usually have accrued gains. You can now get a tax receipt for the market value with no capital gains treatment.

For example, before the law changed if you donated a publicly traded share worth $100 of capital gains then you would have paid 50% capital gains tax, and now you pay only 25% when you donate the share to a charity.

This means that you receive a tax receipt of $100 for your donation that is worth a $50 tax credit, and you pay only $25 in tax.

Giving methods like the ones described above are becoming more popular way of planning ahead for both you and the animals.

 

Have you ever thought about leaving money to help animals in your Last Will and Testament?

If you’d like information on this, or if we can provide you with any other advice, then please do not hesitate to contact us directly.

You can also visit Say I Will for Animals

You can also contact advisors with the Benefic Group www.beneficgroup.com