| 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 |
|
|
|
|
