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If you have publicly traded securities in your portfolio that would generate a substantial taxable gain if sold, consider donating securities. You will receive a tax receipt for the full market value of the securities at the closing trading price on the day they are received and will not owe capital gains tax on the advantage of the securities from the cost base. Tides Canada will receive the net value of the sale of the securities less brokerage commission.

The chart below shows the tax advantage to donating the securities vs. selling the securities and then donating the cash proceeds. In the following example, you double tax savings by donating securities directly.

Donate Cash Proceeds Donate Securities Directly
Fair market value $10,000 $10,000
Cost basis $4,000 $4,000
Capital gain $6,000 $6,000
Taxable gain $3,000 (50%) $0 (0%)
Tax credit (assuming 35%) $3,000 $3,000
Tax on gain (at 50%) $1,500 $0
Tax savings $1,500 $3,000

Please note: You should always seek independent legal and accounting advice when choosing to make a legacy gift.

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