No Capital Gains Tax on Gifts of Listed Stocks
The Federal Budget, which was released May 2nd, 2006, included
an important change for donors to Canadian charities. As of this date
the effective change is:
When you donate publicly listed securities (stocks) to St. Thomas of Villanova
College, you will no longer have to pay any capital gains tax.
The elimination of the capital gains tax makes a gift of appreciated marketable
securities the most tax-effective type of donation. This allows you to
increase the size of your gift but keep the same cost after taxes. An
example of this is as follows:
Purchased 1000 shares of XYZ Corp. for $10 per share:
Value goes up to $20 per share today:
Donate the shares today to Villanova:
Tax on transaction:
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$10,000.00 cost
$20,000.00 current value
$20,000.00 donation receipt
NIL tax
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The $10,000.00 gain on the security would not be taxed. If it were sold
in a regular transaction, there would be tax on 50% of the gain or $5,000.
At the highest marginal tax bracket, you would be paying over $2,300 in
tax.
Any gift you make to St. Thomas of Villanova College helps us meet our
mission of helping develop youth to their maximum ability. We will continue
to focus on ensuring your children are in the best environment to grow
intellectually, emotionally, spiritually and physically. We need your
help to achieve this goal./pr>
The removal of the capital gains tax on publicly listed stocks donated
to charities allows you to reduce your taxes by donating appreciated shares,
bonds, warrants, units, segregated fund units, or prescribed debt obligations.
There has never been a better time to consider donating in this way!
Stephen Morris
Director, Business Development Office
Telephone: 905-833-1909 ext. 363
Email: smorris@villanovacollege.org
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