Photo: Contributed
This year has been challenging in many ways. On the one hand, changing economic conditions make us want to be more conservative with our spending. For many people, concerns about taxes, inflation, or rising interest rates can influence decisions about charitable giving. At the same time, the holidays are typically a time when many of us would like to make donations to support worthy causes in our communities. We know first-hand the impact it has on society’s health care.
So what can you do?
do good by doing good
Here is the answer: There’s never a bad time to donate to charity. Regardless of market trends, there are many economic benefits for donors and investors. And the ray of hope is that you can always do well by doing good.
Here are three approaches that could help reduce income taxes while investing in the future of healthcare in our communities.
1. Even though recent market declines have negatively impacted the value of many investors’ portfolios, they may still own listed securities that are worth more today than when they were purchased. there is.
Photo: Contributed
Shauna George
By donating such shares to the KGH Foundation, you can take advantage of the Canada Revenue Agency’s capital gains tax exemption on your donation. Two of his loyal KGH Foundation donors recently applied this strategy to their annual giving plan.
“We know this is not the best time to be, as markets are sluggish and the economy is struggling,” they said. “But it’s important to keep our hospitals dosed. We all need care.”
take advantage of capital loss
2. Make the loss work for you. If you own shares that are currently in a loss position, donating these shares in kind may improve your financial situation. This scenario also works for cryptocurrency donations, provided the investment meets his CRA-approved cost-based formula.
You can also sell depreciated investments, create capital losses, and donate cash. The investment is tax-free. The charitable donation deduction can also reduce your overall tax liability. For incorporated clients, special care must be taken to first liquidate any balances that may be held in the corporate dividend account.
Capital losses can be carried forward for up to three years and can be carried forward indefinitely to offset realized capital gains on certain assets such as unregistered investments, entertainment and rental properties, and shares of private companies. increase.
In addition, I have a charity receipt on hand to claim the contribution amount against my net annual income for the current year or the next five years.
Benefits to real estate planning
3. Planning real estate now gives you peace of mind, but too many people keep putting it off. Acting now will help ensure that your intentions are met in line with your goals. Pre-planning can also help reduce taxes on your property.
For example, if you designate a charity like the KGH Foundation as a direct beneficiary of your RRSP or RRIF account, ownership of the plan will transfer upon your death. Because the transfer takes place outside of your will, probate fees may be avoided, and a large tax liability on your estate can be offset with donation receipts.
For many people, giving only feels right
In this season of giving, whatever the market is doing, a gift to support the health and well-being of our community will not only be deeply appreciated by the charity that benefits it, it just feels right. .
Donations to the KGH Foundation make a difference in our community. Your generosity will continue to support our doctors, nurses and medical staff as we continue to strive to promote world-class care closer to home for everyone living in this vast and beautiful region. Send a strong message that
Remember: It’s never a bad time to give.
Every day at KGH, thousands of small miracles start with a gift.
For more information on charitable donations to the KGH Foundation, please contact Colleen Cowman’s director of planned giving. [email protected].
The information provided in this column should only be used in conjunction with discussion with a qualified professional advisor in planning the implementation of a strategy for your unique circumstances.
Shauna George, CFA, CFP is an investment counselor and director of RBC PH&N Investment Counsels and a member of the KGH Foundation’s Planned Giving and Finance Committee.
This article was written by or on behalf of a client of our sponsor and does not necessarily reflect the views of Castanet.
