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Stocks & Securities
Recent tax changes have made it even more attractive to donate publicly traded securities. Under new rules in the 2006 federal budget, you may give stocks, bonds, futures and options, as well as shares in mutual funds and you will pay no tax on the capital gain. This greatly reduces the out-of-pocket expense of making such a donation.
For example, a gift of stocks that are worth $10,000 today that you previously acquired for $5,000 would provide you with about $4,500 of income tax savings*, and there would be no capital gains tax owed. This would make the cost of your $10,000 gift a mere $5,500, and would save you what could amount to thousands of dollars of capital gains tax.
To make such a gift is easy. Simply download a Securities Transfer Form and follow the instructions.
* the example assumes you earn income in the top tax bracket in Ontario.
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