Archive for February, 2007
Charitable Giving Percentage Of Income
Question: Why do you think the Obama’s gave less than .4% of their income to charity prior to entering the US Senate?
Despite earning nearly $275,000 in the year prior to winning his US Senate bid, the Obama gave $1,080 in charity — nearly 1/2 the average amount of all Americans, according to a recent Chicago Tribune Article regarding the disclosure of Obamas tax returns. Even as the Obama’s incomes topped $2,000,000 (and with America watching), their charitable giving bearly reach $75,000. How can he call for greater contributions and tax exactions from the rich and make charity a centerpiece of his campaign for a better America with a documented record of such low charitable giving as a percentage of his own wealth?
The amount donate was $1,080, according to Tribune and the New York Times. $1,080 is less than .40% of the $275,000 earned by the Obamas. The national average for charitable giving was approximately $1,865 according to the Tribune.
Answer: Liberals: Do as I say, not as I do.
Surviving an IRS Tax Audit : IRS Audit: Charitable Donations
Charitable Giving Tax Rules
As the end of the year approaches, it’s always a good idea to consider what tax-saving initiatives you might commit to before Dec. 31 in order to ensure you get the most benefit for the 2006 tax year.
To that end, I would recommend 10 key strategies in relation to your investments that you should consider. Keep in mind that these plans should be thought out as soon as possible, since they take some planning and proactive action on your part to set up.
Tip 1. Postpone any asset sales that would result in capital gains until 2007. By doing so, you’ll avoid paying income tax on any gains until you file your 2007 return in 2008. Delayed expenses are almost always a good idea.
Tip 2. Record losses on securities and stocks held outside of any registered plans. This is a significant advantage as tax laws permit the current year’s losses to offset the current year’s capital gains. Additionally, remaining losses can be carried back and put against capital gains in any of the preceding three years or carried forward indefinitely. It’s an important point to note that in order to benefit from a tax loss in this way, you are not allowed to purchase the same security again until 31 days after the sales. And that applies to both non-registered and registered accounts.
Tip 3. Research and Invest in a resource tax shelter. Resource tax shelters allow you to deduct the full value of your investment against other income in 2006. Resource tax shelters are fully endorsed by Canada Revenue Agency, whereas many other tax shelters present the risk of being declared invalid, whether or not they have a tax number.
Tip 4. If you are considering a donation to a registered charity, give stock instead of cash. This creates an exclusive tax break. Under normal circumstances, half of a capital gain is taxed as income; under new regulations, any capital gain created by a donation of securities or stocks to a charitable organization is exempt from tax.
Tip 5. Complete an RESP contribution before the end of the year to qualify for the Canada Education Savings Grant. This grant is up to a maximum of $400 or 20 per cent of your contribution up to $2,000 for the 2006 tax year. If you are just establishing an RESP, it’s important to keep in mind that you’ll require a social insurance number for the child to get the grant. Obtaining a social insurance number can take several weeks to obtain.
Tip 6. If your plan is to make a spousal RRSP contribution, do it before the end of the year, as it will shorten the waiting period for withdrawal. Your spouse will be able to access the funds in 2009 without attribution to you. If you don’t make the contribution until 2007, the three-year waiting period won’t end until 2010.
Tip 7. If you have an RRSP and you are turning 69 in 2006, you are required to convert your RRSP into a RRIF by the end of the year. When establishing your RRIF, you can set up the withdrawal schedule on your younger spouse’s age, which should minimize the mandatory withdrawals and taxable income they create in subsequent years.
Tip 8. If you are required to set up a RRIF in 2006 and you still have income from employment, you are able to make an RRSP contribution and enjoy the benefit of a tax refund the following April. The only caveat is that your contribution must be made before your RRSP ceases to exist at the end of the year. This can by somewhat difficult to do properly, since you are not meant to make contributions to you RRSP on this year’s employment income until 2007. In spite of that, the penalty you will pay for over-contribution will be relatively small when measured against the income tax refund you will receive.
Tip 9. If you are past the age of 69 and still have employment income, you can still defer taxes by contributing to a spousal RRSP. This is a valid approach until the end of the year for spouses who turn 69 in the current tax year.
Tip 10. Avoid investment in mutual funds in your non-registered account prior to year-end otherwise you’ll be stuck paying taxes on gains you didn’t benefited from. This scenario arises because Canadian tax rules require that all capital gains within a mutual fund must be attributed to those holding the mutual fund units at year-end.
While not an exhaustive list, following even a couple of these tax planning tips will ensure you pay the lowest possible taxes possible.
About the Author:
Michael Lee-Smith has been investment planning for over a decade. Learn more about strategic investments at
or visit Michael’s personal homepage at
to learn more about his experience.
Important Tax Law that must be understood and adhered to.
Charitable Giving Celebrities
Question: Whats With All The Celebrity…?
Why are there so many celebrity people that are showing their concern for the situation in Africa and worldwide hunger and poverty? I love that they care so much, but if they were so concerned wouldn’t they stop buying thousand dollar sweat shirts and maybe live more humble so that money that is given to them just for their celebrity status could be given to aide the children of Africa and worldwide? I just think as people in a better position to be charitable, they aren’t when you compare the ridiculous amounts of money they spend on material things.
What do you guys think?
Answer: I totally agree. They need to stop buying expensive clothes, shoes, cars, and houses. Do they really need all that stuff? And for what if they only use it like once??
Charitable Giving 2009
Question: How would you like to answer a few quick survey questions?
Does your job require the skills gained in a bachelor’s degree program?
If yes, about what percent of the time you work would you say requires that level of skills?
Do think the pay you receive at work is more, equal or less than what you deserve for the work you perform?
If less, about what percent more do you think you deserve?
Do you give money to charitable organizations in 2008?
If so, what organizations?
Do you intend to give more, less or the same in 2009 as you did in 2008?
In your opinion, is government or business more responsible for the current economic crisis?
How many years of school have you completed?
What year were you born?
What is your occupation?
National Wildlife Federation
2 yrs college
Michael Jackson Resurrection 2009
Charity Donations Tax Deductions Canada
OnlineCarDonation.com is an online charity that accepts vehicles as a donation in order to support charitable causes. There are many charitable causes that need continual support. Online Car Donation is a charity that supports families in need, the homeless and veterans. If one has a boat that has gone unused for quite some time or if one is looking to sell their boat, then it is in their best interest to look into donating it to Online Car Donation.
The donation does not simply leave the donor with nothing. Online Car Donation assists in managing the entire donation process. They offer a Fair Market Value Tax Deduction that may be used to offset the value of the donation by the IRS. This is an excellent time to make a difference in other peoples’ lives, while at the same time offsetting one’s tax burden. The process is simple and more efficient than trying to simply sell one’s boat.
On the main page once can simply click, Donate Boat, in order to get the process started. Online Car Donation accepts boats of all sizes. As part of the service they will schedule a time to pick-up the boat anywhere in the United States or Canada within a couple of days. The process could not be much easier. In fact, it is not even required that one is present when they pick-up the boat. Simply let the representative know where the boat, title, and keys are located and they can pick it up while one is doing other things.
Lately, the Green Movement has been picking-up steam. Some of the boats are recycled providing a greener alternative. If the boat needs significant repair, then it may be completely recycled. Otherwise, it will be sold for repair or reuse.
Online Car Donation is not a middleman business. They are the charity and they are in the business of giving. They show their caring through a network of charities. They ensure that the donations provide numerous families with housing, help schools build gymnasiums and provide food and shelter for the homeless and veterans.
If one has a boat, yacht or other water craft that is in disrepair or is simply not being used, then it is a good idea to donate it to Online Car Donation. They will not only ensure that the charitable donation helps those in need, but it could provide a tax credit that helps to reduce one’s taxes.
About the Author:
Online Car Donation is not only an excellent way to help charitable causes, but it also allows one to obtain a Fair Market Value IRS tax Deduction. The tax credit assumes the fair market value of the vehicle exceeds $500. The process is simple and easy. Online Car Donation picks-up boat donations in all of the 50 states and Canada making the process much easier. If you have a boat and do not want to go through the hassle of the selling process, then a boat donation is certainly an efficient way of doing it.
Tax Shelters in Canada 3 – What is advantage