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joyfulguy

I'm arranging to pay less income tax this year

joyfulguy
17 years ago

Some months ago a company whose stock I've owned for years was sold, with current shareholders not being offered participation in the new foreign owner.

So I can send in my share certificate and collect the present value of my shares.

When tax time rolls around, I'd deduct my original cost from the current value, and pay tax at regular rate on half of several thousand dollars of capital gain.

Another problem this year is that another company whose shares I've owned for years joined their assets with part of those of another company, to form a new one, in which I'll have shares. But the earlier shares are dead, which means that I am tax-liable this year for half of the capital gain on those shares, as well.

However ...

... if I donate the share certificate of the first company to a charity, they'll give me a receipt for the current value as a charitable donation.

My tax cost will be nil on that capital gain.

The problem I have is ...

... I don't want to give multiple thousands of dollars to one charity.

I attend two churches fairly regularly, and have earlier contributed most of the amount that I plan to give them this year.

I wondered about asking another church to which I contribute, where I used to be minister, whether they'd accept the certificate, give me the receipt - then write cheques to about 20 other charities for over 90% of the amount.

Quite a bit to ask.

Ideally, I'd like to have them send two cheques to each, one this year and one after the New Year, as the full amount is about my contribution to all of them for a couple of years. But I can write to the various agencies and tell them that the contribution is my gift for two years.

A year of so ago, while moving around London, I saw the office of the London Foundation and inquired what they did.

They are a charity, and manage the funds of several family and other charitable foundations in London.

I visited them yesterday. They tell me that they will be willing to provide the service that I desire (several of the charities that I support are social, medical, educational, etc. locally, which they are interested in, as well).

While they do not require it, they will appreciate my leaving some dollars with them to put toward the services which they support, as well.

Our national broadcaster (radio) while discussing charities the other day told of a national charity that accepts donations via credit card and disburses money to 18,000? 80,000? charitable agencies nationwide (and counting - they ask for new names on their site), which is at www.canadahelps.org, and they charge 3% handling fee, largely to cover the charges which the credit card cos. levy on them for their payments. But it appears that they aren't accepting donations of stock certificates.

So - I did some work in London on that issue, yesterday - before the 15 - 20 inches of snow that got dumped on them last night, closing schools, libraries, shutting down transit, taxis only essential calls, etc.

Only a few inches where I live - I'm in a library in the other direction, now.

Have yourselves a lovely weekend, everyone.

One of the nice things about retirement - no more need to scrape ice off of windshields in the dark on winter mornings - and drive home in the dark, after work.

But it is rather important for one to keep one's brain active and lively.

ole joyful

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