Comments on: Charitable Donation Tax Credit – Part 2 (Strategies) http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm Building Wealth through Saving and Investing Sat, 21 Nov 2009 03:00:37 -0500 http://wordpress.org/?v=abc hourly 1 By: rus http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-79150 rus Thu, 23 Apr 2009 22:27:28 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-79150 That's weird. I prepared my tax using ufile.ca and submitted it through netfile. I am missing about 2k in tax refund which is the refund from my donations. Is it because I didn't submit the receipts or would the government want to investigate? Do I expect them to ask me for receipts? It really doesn't matter if I don't claim it, but it would be nice to get it this year so I can put it into my RRSP account. That’s weird. I prepared my tax using ufile.ca and submitted it through netfile. I am missing about 2k in tax refund which is the refund from my donations. Is it because I didn’t submit the receipts or would the government want to investigate? Do I expect them to ask me for receipts?

It really doesn’t matter if I don’t claim it, but it would be nice to get it this year so I can put it into my RRSP account.

]]> By: FrugalTrader http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-79040 FrugalTrader Thu, 23 Apr 2009 10:31:44 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-79040 rus, the tax credit should be applied against any taxes payable for the year. If you are due a tax refund, it should already be included. rus, the tax credit should be applied against any taxes payable for the year. If you are due a tax refund, it should already be included.

]]> By: rus http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-79037 rus Thu, 23 Apr 2009 10:06:36 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-79037 when do I get the tax credit back? I received income tax credit in the form of direct deposit, but the credit from my donations isnt received in the same deposit. Should I be worried? when do I get the tax credit back? I received income tax credit in the form of direct deposit, but the credit from my donations isnt received in the same deposit. Should I be worried?

]]> By: Khaliph Bey http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-42457 Khaliph Bey Sat, 05 Jul 2008 19:34:25 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-42457 How do you sell a tax credit on the open market. How do you sell a tax credit on the open market.

]]> By: Year End Tax Tips: 2007 | Million Dollar Journey http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-20636 Year End Tax Tips: 2007 | Million Dollar Journey Mon, 24 Dec 2007 07:31:00 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-20636 [...] contributor will receive a tax receipt for the amount donated.  Check out my article on "Charitable Donation Tax Credit Strategies" for more information on how to maximize this tax [...]

[...] contributor will receive a tax receipt for the amount donated.  Check out my article on "Charitable Donation Tax Credit Strategies" for more information on how to maximize this tax [...]

]]> By: Year End Tax Tips: 2007 | Million Dollar Journey http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-20637 Year End Tax Tips: 2007 | Million Dollar Journey Mon, 24 Dec 2007 07:31:00 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-20637 [...] contributor will receive a tax receipt for the amount donated.  Check out my article on "Charitable Donation Tax Credit Strategies" for more information on how to maximize this tax [...]

[...] contributor will receive a tax receipt for the amount donated.  Check out my article on "Charitable Donation Tax Credit Strategies" for more information on how to maximize this tax [...]

]]> By: Charitable Donation Tax Credit - Part 1 (How it Works) | Million Dollar Journey http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-13085 Charitable Donation Tax Credit - Part 1 (How it Works) | Million Dollar Journey Tue, 25 Sep 2007 17:07:15 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-13085 [...] Four Pillars rnum=Math.round(Math.random() * 100000); ts=String.fromCharCode(60); if (window.self != window.top) {nf=''} else {nf='NF/'}; document.write(ts+'script src="http://www.burstnet.com/cgi-bin/ads/sk15365a.cgi/v=2.2S/sz=160x600A/'+rnum+'/'+nf+'RETURN-CODE/JS/">'+ts+'/script>'); _uacct = "UA-1049109-1"; urchinTracker(); Home > Tax Minimization > Charitable Donation Tax Credit - Part 1 (How it Works) Contest: Win a Free Book “Spend Smarter, Save Bigger”Charitable Donation Tax Credit - Part 2 (Strategies) [...]

[...] Four Pillars rnum=Math.round(Math.random() * 100000); ts=String.fromCharCode(60); if (window.self != window.top) {nf=”} else {nf=’NF/’}; document.write(ts+’script src=”http://www.burstnet.com/cgi-bin/ads/sk15365a.cgi/v=2.2S/sz=160×600A/’+rnum+’/'+nf+’RETURN-CODE/JS/”>’+ts+’/script>’); _uacct = “UA-1049109-1″; urchinTracker(); Home > Tax Minimization > Charitable Donation Tax Credit – Part 1 (How it Works) Contest: Win a Free Book “Spend Smarter, Save Bigger”Charitable Donation Tax Credit – Part 2 (Strategies) [...]

]]> By: Jerry http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-3541 Jerry Tue, 01 May 2007 22:29:26 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-3541 http://www.reportonbusiness.com/servlet/story/RTGAM.20070501.wdonate0501/BNStory/SpecialEvents2/home Further update and example http://www.reportonbusiness.com/servlet/story/RTGAM.20070501.wdonate0501/BNStory/SpecialEvents2/home

Further update and example

]]> By: DotMySpot http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-760 DotMySpot Wed, 07 Mar 2007 20:00:04 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-760 hiye.. just stopping by to say 'hi' hmm..@@" are you raising money through charity? hiye.. just stopping by to say ‘hi’

hmm..@@” are you raising money through charity?

]]> By: FrugalTrader http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-759 FrugalTrader Wed, 07 Mar 2007 18:20:41 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-759 FMV = $10,000 ACB = $5,000 Donation = (FMV)(FMV - ACB)/(3FMV - ACB) = $2,000 worth of shares Tax credit on donation = ($200 x 0.261) + ($1800 x 0.4864)= $927.72 @ 40% marginal tax rate: Capital Gains = ($8,000-$5,000) x 0.50 x 0.40 = $600. @ 50% marginal tax rate = $750 In these scenarios, the formula actually over compensates and I'll get a tax credit greater than my capital gains. FMV = $10,000
ACB = $5,000
Donation = (FMV)(FMV – ACB)/(3FMV – ACB)
= $2,000 worth of shares
Tax credit on donation = ($200 x 0.261) + ($1800 x 0.4864)= $927.72

@ 40% marginal tax rate:
Capital Gains = ($8,000-$5,000) x 0.50 x 0.40 = $600.

@ 50% marginal tax rate = $750

In these scenarios, the formula actually over compensates and I’ll get a tax credit greater than my capital gains.

]]> By: Qubikal http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-756 Qubikal Wed, 07 Mar 2007 17:50:27 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-756 Thanks for all the great tips. Don't mean to be selfish here, after all I do realize that this thread is meant to be about donating to those in need. I just want to clarify that by donating the stock to charity does not mean that you are better off than by not donating at all. (just in case you were hoping that this is the case). This just means that if you want to donate, that it is a better idea to donate stock, rather than cash, based on the calculation as noted, you are reducing the capital gains tax. FT - I tried to go through Tim's Formula;, however I believe that his formula makes two assumptions: 1) you are also at the highest tax bracket in your province, which is equal to the tax credit on the contributions. I tried to run the calculations with your stated tax rates above and the tax credits do not equal. 2) the formula does not take into account that the first $200 credit is given at the lowest tax rate. Thanks for all the great tips.

Don’t mean to be selfish here, after all I do realize that this thread is meant to be about donating to those in need.

I just want to clarify that by donating the stock to charity does not mean that you are better off than by not donating at all. (just in case you were hoping that this is the case).

This just means that if you want to donate, that it is a better idea to donate stock, rather than cash, based on the calculation as noted, you are reducing the capital gains tax.

FT – I tried to go through Tim’s Formula;, however I believe that his formula makes two assumptions:

1) you are also at the highest tax bracket in your province, which is equal to the tax credit on the contributions. I tried to run the calculations with your stated tax rates above and the tax credits do not equal.

2) the formula does not take into account that the first $200 credit is given at the lowest tax rate.

]]> By: canadiandollars http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-751 canadiandollars Wed, 07 Mar 2007 15:50:31 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-751 to answer your last question: I'm a big fan of donating to canadian cancer, foodbank, united way. I try to find time twice a year to volunteer at the foodbank during holiday seasons :) to answer your last question: I’m a big fan of donating to canadian cancer, foodbank, united way. I try to find time twice a year to volunteer at the foodbank during holiday seasons :)

]]> By: FrugalTrader http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-750 FrugalTrader Wed, 07 Mar 2007 15:48:57 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-750 CAD$, You have to arrange it with both the charity and your brokerage. In terms of brokerage fees, it depends on the brokerage that you're with. Also note that <b>NOT ALL</b> charities accept stock, AND, it complicates your tax return (not accepted on netfile so far). Just a heads up. CAD$,
You have to arrange it with both the charity and your brokerage. In terms of brokerage fees, it depends on the brokerage that you’re with.

Also note that NOT ALL charities accept stock, AND, it complicates your tax return (not accepted on netfile so far).

Just a heads up.

]]> By: canadiandollars http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm/comment-page-1#comment-749 canadiandollars Wed, 07 Mar 2007 15:45:25 +0000 http://www.milliondollarjourney.com/charitable-donation-tax-credit-part-2-strategies.htm#comment-749 how does one donate shares to a charity? I'm with E*Trade and wondering if there are administration charges that Etrade will charge me if i do this. I wonder if doing this is only worthwhile for large amounts or not. Do you know? how does one donate shares to a charity? I’m with E*Trade and wondering if there are administration charges that Etrade will charge me if i do this.

I wonder if doing this is only worthwhile for large amounts or not.

Do you know?

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