A Low Cost Donation Strategy

If you own highly appreciated securities, you may not want to sell because large capital gains taxes will be due. Canadian governments provide an incentive for donation of such securities to registered charities, as long as they are donated directly rather than being sold. A direct in-kind donation incurs no capital gains taxes and creates a tax credit at top marginal rates for the full value (when total calendar year donations exceed $200). The end result is that donating a portion of the securities can generate sufficient tax credits to offset the tax payable on the sale of the remainder, leaving your overall tax bill close to what it was.

 Province    My tax bracket %

I own shares at a cost of $ with a market value of $

Disclaimer: Tax brackets are approximate and results may not be exact.
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