Year end is just around the corner, and with the markets as hot as they are, now is an excellent time to consider a Gift of Securities to help reduce your 2021 annual tax bill while investing in your local community.
The Canada Revenue Agency does not apply capital gains tax on donations of appreciated publicly traded securities. This means that you can benefit greatly to reduce the cost of your charitable giving with a tax offset or to increase the amount of your intended gift, possibly without increasing the cost to you.
As the donor, you’ll receive a donation receipt for the fair market value of the donated security. This amount is determined as the final closing price on the day the gift is received by United Way. Additionally, you’ll continue to receive and benefit from the regular tax deductions of making a charitable donation.
Utilizing this option to reduce the capital gains on appreciated stock could potentially save you a considerable amount – right in time for the holidays!
If you think this option might be right for you, then don’t wait. It does take a little bit longer to transfer your gift to United Way than it does to make a donation of cash, so with the donation deadline of December 31 just around the corner, you don’t want to miss your chance.
Download our Gift of Securities transfer form and speak with your financial planner who can advise you on the most tax effective approach for you.
Our handy Tax Calculator can help you get an idea of how you might be able to further maximize your savings while making a gift. For additional information, you can also take a look at our Gift of Securities FAQ or call Jennepher Cahill 519-280-5452.