TAX BENEFITS

FROM DONATING STOCKS

3 Ways To Receive Tax Benefits

From Donating Securities Into A Charity or Foundation

1) You receive the tax donation receipt for the market value of the shares at time of donation (even if your original cost to acquire the shares was much lower).

2) By donating shares you avoid having to pay the capital gains tax on the shares you donate thereby reducing your tax bill further or eliminating a capital gains liability from your estate.

3) Lastly, (only if donating shares from a Canadian corporate structure/Holdco), the third benefit is whatever the capital gain amount is of the shares you donate creates a capital dividend allowing that capital gain equivalent amount to be removed from the Corp tax free (versus as a taxable dividend, etc).

Example

You invest $5,000 in Google which is now worth $10,000.

You donate to charity and get a receipt for $10,000 even though you only invested $5,000.

You have also eliminated a $5,000 taxable gain from the portfolio.

If done from a Corp it also allows you to withdrawal a $5,000 capital dividend (tax free).

Please Be Advised

These are very rough figures to illustrate the strategy, and this is not to be construed as tax advice or a recommendation.

Anyone considering this strategy should seek independent advice from their own tax advisors to understand how it may apply to their personal situation.

Please contact Justin French directly for details on how to discuss this with a member of Mr. Skeat's team.