From our annual Tax Tips guide, here are the tips and suggestions related to Charitable Donations for the year 2016.
Tip: Consider donating publicly-traded securities instead of cash.
- A tax-advantaged gift of securities
can be made to a private foundation as well as to public charities.
Any appreciation in the value of the securities will not be subject
to capital gains tax if the securities are donated to:
- A registered charity; or
- A private foundation after March 18, 2007. There are special rules that apply to persons not dealing at arm's length with the foundation. For more information, please contact us.
- The donation credit (for individuals) or deduction (for corporations) continues to be available for the fair market value of the securities donated.
- To avoid capital gains tax on the appreciated securities, the actual securities must be transferred to the charity or foundation.
- Similar rules will apply to a capital gain on ecologically sensitive land donated to a conservation charity.
- Due to 2011 changes to the tax rules, the donation of flow-though securities may trigger a capital gain to the donor.Note: The Federal Government has abandoned the proposal to have the same benefits apply on the capital gains arising from the disposition of private corporation shares or real estate.
Our annual Tax Tips can assist you in your tax planning presenting some quick ideas and strategies for you to employ. Please take the time to review your 2016 tax situation and call us for specific recommendations tailored to meet your needs. We will be pleased to work with you on these and other tax-savings ideas.
Click here to download a full copy of the Tax Tips 2016 Guide (PDF).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
