Gifts of Shares and Securities
Tax changes have made donating publicly listed securities such as stocks, bonds and mutual funds an attractive option for many individuals. Effective May 2, 2006 the Federal Budget reduced the Capital Gain Inclusion Rate from 25% to 0 on the donation of publicly traded shares to Charities.
Based on a $10,000 donation of shares to the Charity, the total tax assistance derived by donating stocks results in significant savings to the donor:
| How to multiply the impact of your gift to Moorelands | Sell security and give cash | Donate securities directly |
| Market value | $10,000 | $10,000 |
| Adjusted cost base (amount paid for securities) | $4,000 | $4,000 |
| Capital Gain | $6,000 | $6,000 |
| Taxable gain at 50% | $3,000 | $0 |
| Marginal Tax Rate in Ontario | 46.41% | 0% |
| Tax on gain at Marginal Rate | $1,392 | $0 |
| Charitable Tax Receipt for gift | $10,000 | $10,000 |
| Tax Credit at the Marginal Rate | $4,641 | $4,641 |
| Net Tax Savings | $3,249 | $4,641 |
| Total Tax Savings | $3,249 | $6,033 |
To make a gift of securities, you can contact our broker directly:
Jones, Gable & Company Limited
110 Yonge Street
Toronto , ON M5C 1T6
416-365-8000 attn. Don Ross
Acc# 30-9999-1 to the credit of Moorelands Community Services
For more information please phone Robert Tomas at (416) 466-9987 ext. 307 or contact him by e-mail.
