S8& ~ Wednesday, October 14, 1992 - North Shore News BUSINESS More strategies to assist with tax planning DID YOUR youngster go to camp (or boarding school) this year? You may be able to claim some or all of the cost as a tax deduction. Do you know how [o contribute to an RRSP or make a charitable donation without cash and multip- ly your tax savings? Today we wind up our six-part annual series of tax planning col- umns with information provided by Elio Luongo, tax manager of KPMG Peat Marwick Thorne, chartered accountants. As before, use this information to help get your planning under way. But be prepared to do some more research and possibly seek expert advice before applying these strategies to your own situa- tion. “Up to $120 a week paid for lodging to a camp or boarding school will qualify as a childcare expense deduction — subject to the normal fimits and = orher rules,” Luongo said. (See the Child Care Expenses Tax Guide for more details; ask your local tax office for a copy.) We may not have reached a Michael Grenby ND SENSE completely cashless society yet. But at least you can make cashless contributions to a charity or an RRSP. “You may donate a prize — DOLLARS Al perhaps a rare painting — for a charity tottery, or give antique furniture or a stamp collection to your church fer its annual bazaar,’” Luongo said, adding that normally only ‘'capital prop- erty” (as opposed to used con- sumer goods) can qualify as a donation in kind for tax purposes. *‘An appraisal may be required. Then you should get an official receipt for the fair market value of the donation and may claim this the same way you would claim a cash donation.” When you give capital property this way, a deemed disposition occurs that might trigger a capital gain. If you have access to your capital gains exemption, you could then use it while it still exists. With your (or a spousal) RRSP, transferring stocks to other quali- fying property to the plan entitles you to a deduction (within the usual limits} equal to the value of the property on the day of the transfer. “Again you have a deemed disposition — and if this produces @ capital gain, again you may be for business and for all of Canada and its highways. Doublo-stach container trains can greatly reduce highway truck traific, and alsn reduce fuci consumptien and emilasions, shanty. able to use up your capital gains exemption,’’ Luongo said. However, once you hold stocks in your RRSP, future dividends and profits won’t benefit from the dividend tax credit and capital gains exemption: ‘‘All this money will be taxed in full when ic is withdrawn."*' Also, if you don’t already have “a self-directed RRSP, you will have [to pay annual fees and possibly other costs (which you may deduct as ‘carrying charges’’ as long aS you pay these expenses separately; don’t allow them to te taken from the money in the plan). Luongo encouraged most people to contribute to their RRSPs now for the 1992 tax year, rather than waiting until the March §, 1993, deadline. However, if you used your RRSP funds to help buy a home through the Home Buyers’ Plan, special restrictions apply to any contributions made before March 2, 1993. Turning back to child benefits. Luonge noted jast February’s for trucks. budget did away with family al- lowance payrnents after this year. Starting next January, a new child benefit system will provide parents (depending on their in- come) with a monthly non-taxable benefit of up to $1,026 per child per year. This will be increased by $75 for the third and each subsequent child, and by $213 if the child is under seven and you don’t claim child-care expenses. As with the family allowance payments, you may save and jn- vest this money in the child's name (or in your name in trust for the child). The investment income earned by this money will then belong to the child for tax pur- poses. - Copyright 1992 Mike Grenby is a North Shore-based columnist and in- dependent financial adviser who works with individuals; he will answer your questions as space allows — write to him c/o The North Shore News, 1139 Lonsdale Ave., North Vancouver V7M 24, The wave of the future in freight transportation is double-stacked containers on trains, further improving rail’s advantage as a “passing lane” CN is already Canada’s largest carrier of double- stacked containers. With our recent restructuring to form CN North America, we'll put major emphasis on extending our intermodal services and double- stacking to the entire continent. This amaigamation improves our cross-border access to and from the U.S. through key gateways and direct-line linkage. to Chicago's major rail crossroad. Double-stasking offers economic and ecological advantages. A doubie-stacked container train increases sharply the capacity of a regular container train, and saves fuel. The same number cf containers on trucks would consume almost three times as much fuel. These efficiencies help keep us competitive and provide funds for major improvements. We'll invest almost $600 million over the next few years on intermoda! service and double-stacking. Over $425 million is earmarked for innovative railcars, containers anc for expansion and improvement of terminais. Another $155 million will go toward construction of a new tunnel at Sarnia facilitating cross-border movement of double-stack trains. CN North 4.merica’s emphasis on double-stacking with its economic and ecological advantages stacks up as something special CN e