Benefits of a Gift of Stock
Making a Gift of Stock to RMC is a ‘triple win’ for you.
- You support the work of the RMC CLub Foundation
- You receive a charitable tax receipt to offset income.
- You pay no capital gains tax on the appreciated value of the securities.
One tax break available since early 2006 has been to give a gift of appreciated stock- with no capital gains tax applied. If you own a winning stock, donating it directly can create a substantial tax deduction for you.
- Charitable Donation of Securities in Kind Trasfer Form
- Notice of Donation by Direct Gift of Equities or Other Financial Instrument
Examples of donating appreciated stock:
This December 2007 Toronto Star article describes how much of a particular stock you should donate, depending on your personal situation, to fully cancel out any capital gains you may incur on your investment. In effect, you may direct some profits to your charity of choice, such as the RMC Club Foundation, rather than to payment of taxes. This portion
can be calculated by this simple method.
The author uses the example of BCE, Canada’s widest held stock. BCE will soon be bought up in full by Ontario Teacher’s Pension Fund (Teacher’s Pension Fund CEO is 7771 Jim Leech, RMC Class of 68) and cause may Canadians a taxable capital gain. Of course any stock may be given this way.
An example using BCE, owned by many Canadians. Owners will soon face a capital gain when the company is bought Ontario Teachers Pension Fund and privatized. BCE will disappear from portfolios as it is sold automatically- to be replaced by cash, subject to capital gains tax.
If you were to donate your shares of BCE (or any other stock) the FULL VALUE of the shares at donation becomes tax deductible-$3975. Your write off will be larger than the profit if you kept the stock-and can make a great gift to benefit RMC! |