Donating Cash vs Donating Shares | ||
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Figure 2: Compares donating publicly traded shares directly vs selling the shares and donationg the cash proceeds. Be sure to consult your tax advisor and charity before making a gift of property. | ||
FIGURE 2 | ||
Marginal Tax Rate: 44% | ||
Sell shares and donate cash | Donate shares directly | |
FMV of doantion (a) | $100,000 | $100,000 |
Adjusted cost base | $20,000 | $20,000 |
Capital Gain | $80,000 | $80,000 |
Taxable capital gain | $40,000 | $- |
Tax on capital gain (b) | $17,600 | $- |
Donation tax credit (c) | $44,000 | $44,000 |
Tax Savings | $26,400 | $44,000 |
Total cost of donation = (a) + (b) – (c) | $73,600 | $56,000 |
Tax Savings by Donating Shares | $17,600 | |
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