Down she goes!!! Cruising for a bruising. Going down to 4 or 5 cents.
Donate nearly worthless common shares and flow through shares to family or charity.
The plan involves a donor first purchasing shares listed on an exchange that are "flow-through shares" as defined in subsection 66(15) of the Income Tax Act (the Act) pursuant to a subscription agreement with the corporate issuer. The donor immediately donates these shares to the desired charity, and the charity then immediately sells the donated shares to a pre-arranged third-party buyer. By proceeding in this way, the donor is able to deduct Canadian Exploration Expenses (CEE) renounced in respect of the flow-through shares, and claim investment tax credits and charitable tax credits or deductions.