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Home My WebLink AboutThe Citizen, 1996-12-18, Page 12PAGE 12. THE CITIZEN, WEDNESDAY, DECEMBER 18,1996 The news from ondesboro Compiled by June Fothergill Phone 523-4360 64 gather for euchre WHEN? • • 24 hours, for life. • • • ® Medic Alert .46r 1 -800-668- 1 507 WHERE DO YOU TURN WHEN YOUR DOG OR CAT IS LOST? YOUR NEWSPAPER: The link to your community Christmas is a time for giving New rules for charitable donations By Linda Henhoeffer Financial Advisor Canadians are known around the world for our generosity in helping others. The most immediate example is our prime minister trying to muster international aid for the victims of civil war in central Africa. Charitable donations are made for compassionate reasons. They can also be helpful in reducing our income taxes. The 1996 federal budget made several changes in charitable giving to improve the income tax breaks on our donations. In this way, the federal government is hopeful we Canadians will give more to charitable organizations at a time when governments are reducing their spending to control their debt. Basic Rules 1. The first $200 in donations earns a 17 per cent feeeral tax credit, which works out at about 27 per cent once your savings on provincial taxes are included. Above $200, there is a 29 per cent federal tax credit which can boost your tax savings to as much as 50 per cent when provincial taxes are factored in. 2. If you and your spouse both make donations totalling over $200, then combine the receipts and claim them on one tax return. Usually, it works to the couple's advantage to file the donation under the spouse's name with the highest income. 3. We are allowed to delay charitable claims for up to five years. If each year you give less than $200, consider combining receipts for two or more years to put yourself over the $200 threshold. Recent Improvements Paul Martin's federal budget of March, 1996 increased the tax advantages of charitable donations, both while we are alive and as part of an overall estate plan. For the 1996 tax year: 1. The annual limit on charitable donations qualifying for a tax credit increases to 50 per cent of net income (up from 20 per cent). If you have receipts for more than 50 per cent, you can save the receipts and claim the credit in any of the following five years. 2. The limit on gifts in the year of death and the year before death, including bequests and legacies, increases to 100 per cent of net income (up from 20 per cent). Some donors choose to use a life insurance policy to maximize their gift while minimizing the cost of their donation. This can be done simply by naming the charitable organization of our choice as the beneficiary of our life insurance policy. A common estate planning challenge is how to deal with the income tax problem on investments held in RRSP's and RRIFs at the death of the second spouse. As all the funds held in these RRSP's and RRIFs have never been income taxed, ALL the funds are added to the income of the deceased and taxed. This usually means that 50 per cent of these funds are lost to the government as income tax! Sometimes, a life insurance policy is advisable to cover the income tax cost. Another interesting idea is to give these assets to a charitable donation by way of your will. By giving your RRSP or RRIF funds to a charitable organization via your Will, the tax credit from the charitable donation will significantly reduce the income tax payable on these funds. Giving is part of being a Canadian. Careful planning when we make our donations means we help charitable organizations, while minimizing our income taxes. Happy giving! NOTICE Dear Valued Customer: Due to unforeseen circumstances as at December 31/96 we will no longer be providing gasoline service. We at J.L. McCutcheon Motors will still be happy to provide full mechanical, auto boy, automotive sales and services. We apologize for any inconvenience this may cause. Sincerely, Robert Richmond / John Exel CHARITABLE DONATIONS * benefit your favourite charity * new rules * reduce income taxes Call for more information and your free 1997 calendar Linda Henhoeffer 1-800-667-3887 335-3887 ?Investment Gedre Grand Opening Dr. Greg Antoniadis (Wingham) BLYTH OFFICE 221 Dinsley St. E. December 20 7 p.m. - 9 p.m. • Door prizes • Refreshments Office practice starting evenings Tuesday & Wednesday January 7 & 8 Hunts set personal best times The monthly euchre tournament was held at the Hall on Friday evening, Dec. 13. There were 16 tables of euchre. Winners were: first, Ila and Carman; second, Frank and Kay; third, Harvey Edgar, Gordon Bosman; lone hands, Liz and Lyons usher at United Greeters at Londesboro United Church on Sunday, Dec. 15 were Elgin and Joy Penfound. Ushers were Bert and Joanne Lyon. The Advent candle was lit by the Dougherty family. The choir sang Ring Bells for Peace. The sermon topic was "Turning Blue, Christmas White." The Christmas Eve service at Londesboro Church is at 7:30 p.m. People The sympathy of the community is extended to Jerry and John Phelan on the death of their sister, Mary McCaughey. Council pays bills Continued from page 11 discuss police services. A maintenance request for Mills Drain, Lot 18, Conc. 10, was accepted. Final assessments will be com- pleted on Warwick Drain. The landfill site will be closed Dec. 25 and Jan. 1, but open Dec. 28 and Jan. 2 A souvenir table will be booked for the Genealogical Society Work- shop, Apr. 19. Road and general accounts were approved for payment in the amounts of $25,116.57 and $401,376.09. Following the regular council meeting, the Morris Twp. Recre- ation Committee met to take care of the bills. Accounts totaling $7,461.03, were approved for pay- ment. Edythe. There were three share the wealth winners. The next euchre party is at the hall on Friday, Jan. 10 at 8 p.m. In terms of medals, the Hunt family speed skating weekend was not a great success, but several members did have personal best times and attain personal goals. Competing in the Forest City International Short Track contest in London, Dec. 7-8, Cayli Hunt qual- ified to skate with the second fastest group in her class at the all- points meet. (Competitors are ranked by speed rather than age or sex) Racing against older skaters, Cayli place ninth out of 11, but earned two personal best times. Her 220 meter time dropped to 43:27 from 45:82 and her 500 meter time went to 1:44:79 from 1:48:64. Brett skated against older Midget-aged racers, placing 14 out of 15, but achieving personal bests in the 666 metre and 777 meter. The first dropped to 1:34:15 from 1:37:06 while the latter went to 1:49:75 from 1:50:36. "For Brett, this was a really good race," says mom Kathy Hunt. "He put together all his racing knowl- edge, drafting behind other skaters and executing a nice outside pass." Carla was able to skate only one day of the two-day meet, nearing a personal best in the 500 meter. Hullett Twp. councillors accept- ed a quote, Dec. 2, from the Town of Seaforth, in the amount of $830, for the production of tax bills for the coming year. A letter will be sent to the county council stating township council- lors do not believe the county should be involved in waste man- agement planning. A bylaw was passed, authorizing the execution of an agreement with other municipalities regarding the joint management of Blyth and District Community Centre. "She is almost 100 per cent" (after an off-season injury). Skating against young men between the ages of 14 and 19, Kathy earned five personal best times, though she finished low in the standings. Her times were: 666 pursuit, 1:10:23 from 1:11:36: 500 meter, 50:96 from 50:99; 777 meter, 1:20:47 from 1:20:54 and 1,000 meter, 1:45:91 and 1:45:55 from 1:46:59. Kathy will go to the Canadian Short Track meet in Calgary, Dec. 20-22, to attempt a national rank- ing. She has to finish at least 32nd out of 45 skaters. Approval was given for the pay- ment of accounts at a cost of $55,151.43. Seaforth to produce Hullett Twp. tax bills