Support Us with a Gift of Appreciated Securities
The 2006 Federal Budget announced that there will no longer be any
capital gains tax payable on donations of publicly traded securities
made on or after May 2, 2006.
Donors should consult with their professional advisors with
respect to authoritative advice on potential tax savings for gifts of
securities.
This enhancement creates an excellent
gifting mechanism that may multiply the benefits to you and to NET Ministries of Canada.
THE NEW RULES ALLOW YOU TO:
> realize significant
profits from the appreciated securities you wish to donate
> pay no income tax on the
gains realized
> make a generous gift to NET Ministries of Canada
> make use of the excess
tax credit generated from this gift to reduce other tax liability
The sum of the parts is
GREATER than the individual parts.
| Sell the shares and donate Cash to Charity | Donate shares to Charity | ||
| Purchase Price | $10,000 | $10,000 | |
| Current Value | $50,000 | $50,000 | |
| Capital Gain | $40,000 | $40,000 | |
| Taxable Capital Gain @ 50% | $20,000 | $0 | |
| NET Tax Payable @ 45%* | $9,000 | $0 | |
| Benefits | Pay $9,000 in taxes | Pay $0 in taxes | |
| *Tax rates vary in provinces |
TO QUALIFY FOR THIS SPECIAL TAX
TREATMENT
The Securities Must:
1. Be publicly traded securities
which include:
> Stocks or shares listed on
an approved stock exchange
> Units or shares in a
Mutual Fund
> Units of a segregated fund
trust from an insurance policy
2. Have appreciated in value
3. Be donated in kind to a charity
or public foundation
> Not sold by donor
> Ownership transferred
directly to NET Ministries of Canada
