Tax Benefit of Donating Shares*

 

Sell Shares &
Donating Cash

 Donating Shares
Value of Donation
Original Cost
Capital Gain
Taxable Capital Gain
Tax on Capital Gain
Donations Tax Credit
Net Tax Savings 		$100,000
$10,000
$90,000
$45,000
$21,317
$47,370
$26,053		 $100,000
$10,000
$90,000
$0
$0
$47,370
$47,370


Assumptions:
• The donor wishes to make a gift of $100,000 of publicly traded securities
• The donor’s total income is sufficient to claim the full donation
• The adjusted cost base of the securities is $50,000
• Marginal tax rate of 47.37% (PEI )
• The donor has other donations of at least $200

Source of Example: ArsenaultBestCameronEllis Chartered Accountants.
* Information current as of December 31, 2007