Consider this strategy for a donation of publicly listed sec...
For gifts of other types of appreciated property, 50 percent of the gain will be taxed.
In either case, your tax credit will always exceed the tax on the gain, resulting in net tax savings, because 100 percent of the taxable gain is creditable.
And whether you donate stocks or property, you will help more children find a place to call home and an SOS mother to love and guide them...
Tim Cestnick, A Canadian Tax Expert suggests "think outside the box". His December 4th, 2004 Globe Article suggests; Consider these ideas to make your giving easier.
- Donate your losers. Consider donating some of your stocks or mutual funds that have dropped in value. You'll trigger capital losses that you can use to offset capital gains, and you'll receive a donation credit for the fair market value of the securities.
- Donate your winners. If you're thinking of selling investments that have appreciated in value, consider donating those securities to charity. Canadian tax law will reduce your tax bill by 50 per cent on the disposition, plus you'll receive a donation credit for the value donated.
Consider this strategy for a donation of publicly listed securities
Selling the security can come with a tax cost if the investment has appreciated in value.
With a donation of part of your publicly listed securities you can eliminate the tax on the sale of this investment.
How: If you donate publicly traded securities to a registered charity in Canada, you won't face any tax at all on the accrued capital gains, if any, on those securities.
So depending upon your tax bracket or marginal tax rate you can donate enough securities to get a charitable tax receipt that will cover the income tax for the in capital gains on the securities you sell.
You cover your increase in taxes, you make a charitable donation to SOS Children's Villages and sell your securities and without penality.
Note, you will only sell about 80% of your security, donate about 20% of your security, depending upon your tax margin.
For more information, contact;
Dave Greiner, Deputy Director
1-800-767-5111 x 14