Philanthropy

Philanthropy

How to make donations more tax efficient

When it comes to philanthropy, altruism drives a Canadian’s desire to donate; however, Canada’s income tax regime may impact how the donation is made.

If a client wants to make a gift or donation to a Canadian charity, as advisors we can provide value by suggesting how to maximize the value of a donation or how to make a donation more tax efficient.

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Tax-efficient Investing

What is a Capital Gain and How is it Taxed?

Background

Prior to 1972, capital gains on the disposition of property were not subject to tax pursuant to Canada’s Income Tax Act (ITA). Over the last 44 years, Canada’s Department of Finance, pursuant to its objective of taxpayer fairness, has introduced various tax measures impacting the reporting and taxation of capital gains, such as:

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Philanthropy

Charitable Giving Through Your Estate Offers Compelling Tax Advantages

Today, most Canadians consider philanthropy or charitable gifting in their estate plan. This article will discuss some of the tax advantages of charitable gifting. Some of the planning challenges are discussed in a separate article.

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Philanthropy

What to Consider When a Charitable Gift is Part of Your Estate

A charitable gift as part of an individual’s estate plan has both planning and tax benefits. From a planning perspective, there are numerous things to consider. This article will discuss some of those considerations. The tax benefits are discussed in a separate article.

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Philanthropy

Tax-efficient philanthropy: Sharing of donation credits at death

Spouses and common-law partners can share donation credits to allow for maximum savings for a family. Under pre-2016 rules, this flexibility extended to donations made at the time of death. Effective 2016, changes to legislation have reduced this flexibility. This article discusses the changes and related impact.

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Philanthropy

Tax advantages of charitable gifts - a case study

For those who are philanthropically inclined a charitable gift can both ensure a favourite cause benefits while the individual realizing a tax benefit. In this case study, we will review the tax benefits of a charitable gift and how a gift can be particularly beneficial when mutual funds are used to fund the gift.

For clients who are philanthropically inclined, a plan which supports the charitable causes and community projects important to them is an important part of a tax efficient retirement and estate plan. To build a plan and gain an understanding of the vehicles available and the tax and estate rules associated with philanthropic giving is of fundamental importance.