Tax-Smart Giving: Listed Securities
Elimination of Capital Gains Tax on Donations of Securities to St Michael’s College. In the 2006 Federal budget speech, the Minister of Finance announced that gifts of publicly traded securities to a charity would no longer be subject to capital gains tax.
The normal capital gain inclusion rate for taxation purposes on securities is 50%. The change, which is effective immediately, means that no capital gain has to be included in income when securities are donated to a charity.
Donations of securities will continue to receive a tax credits based on the full value of the securities donated.
If you have been considering making a gift of securities to St Michael’s, there could be no better time than now. The combination of the removal of capital gains tax and the present all time high of the Canadian stock exchanges presents an excellent opportunity to support the College.
Eligible securities include: shares, bonds, bills, warrants, futures and mutual funds traded on Canadian, American or other major international exchanges.
- The rate of capital gains tax owed is reduced from 50% to 0
- The donor receives a tax receipt for the full appreciated value at the date of transfer
- Claim charitable donations up to 75% of your net income
- A five year carry forward on any unused donation amount is permitted
- Can be transferred electronically to the College