Gift of Securities
Donating stocks, bonds, mutual funds, flow-through shares or other securities can be a tax effective way for you to help support Trans Canada Trail’s mission and work. You will need to instruct your broker to transfer the securities to Trans Canada Trail’s brokerage account, and inform us by completing the Gift of Securities: Share Transfer Form.
The benefits include no tax on the capital gains that have accumulated on the securities, and your donation receipt will reflect the closing market value of the shares on the day our brokers receive them (which will reduce taxes on other sources of income). Also, you will eliminate tax on the capital gain that would be payable if you otherwise sold the security.
Example: This example is only for illustration purposes. Tax impact will depend on individual circumstances.
|GIFT to Trans Canada Trail||Selling Shares on the Market and Donating Cash||Donating Shares|
|Fair market value of shares||$100,000||$100,000|
|Cost of shares||$20,000||$20,000|
|Capital gains realized||$80,000||$80,000|
|Taxable capital gain||$40,000 (50%)||$0|
|Taxes payable (assume 46%)||$18,400||$0|
|Tax credit* (assume Ontario resident)||$46,000||$46,000|
|Net tax reduction||$27,000||$46,000|