| What
is the after-tax cost of donating securities? |
| The
Gift of Securities Advantage |
Sale of Stock:
Donation of Proceeds |
Gifts of Stock
|
| Donor
sold the Appreciated Publicly Trade Stock or Security and donated
the cash proceeds (No capital gains reduction) |
Donated
as of May 2, 2006 Budget Appreciated Publicly Traded Stock or Security
(100% capital gain reduction) |
Fair
Market Value (FMV)
at time of disposition |
$10,000
|
$10,000 |
| Cost
Base (Original cost of shares) |
$2,000 |
$2,000 |
| Taxable
Gain (% of Gain) |
$4,000
(50% of gain) |
0$
(0% of gain) |
| Tax Credit from
Donation (46% of FMV) |
$4,600 |
$4,600 |
Tax
on Gain
46% of Taxable Gain) |
$1,840 |
$0 |
| Tax savings |
$2,760 |
$4,600 |
Assumptions:
- You have
given at least $200 in charitable donations in the same tax year
- Provincial
tax rates vary. Marginal tax rate at 46% for illustration. Please
choose the tax rate that more closely reflects your own personal
tax situation.
- You have
eligible publicly-traded securities to donate which may include
shares, bonds, bills, warrants, futures and units in mutual funds
that are traded on Canadian, American and/or major international
exchanges
Please
Note: For
more information about charitable tax credits, please visit the
Canada
Revenue Agency website.
The
information provided above is for illustration purposes only. Please
consult your financial and/or legal advisor for tax-effective giving
that is most suitable for you. |
Click
HERE to Download a printable Give Stock Program brochure
|
