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Tax Advantages

Federal Government Announces Elimination of Capital Gains on Gifts of Appreciated Securities

Tax Advantages of Giving Securities to Pickering College

A $10,000 cash gift and $10,000 gift of appreciated securities (stocks, mutual funds, bonds) both generate the same charitable tax credit. But if you transfer publicly-traded stocks, bonds or mutual fund shares in-kind to make your gift, you will receive an additional tax benefit. The federal budget announced the elimination of capital gains tax on gifts of securities, effective May 2, 2006.

When you transfer gifts of securities to Pickering College, you receive a donation receipt for the fair market value on the date of transfer without triggering capital gains tax. If you were to sell securities and gift the proceeds, 50% of the gain would be taxable.

The Impact: You receive a larger tax credit by “buying low and giving high”. Don’t sell your stock first. Even though you give Pickering College the proceeds as a gift, the Canadian Revenue Agency will impose capital gains tax on your sale, wiping out the benefits of this arrangement.

See an example of a gift of securities.

Your gift of securities is valued as of the day the securities reach our account, if your broker transfers them electronically or, the postmark date, if you mail them. Your gift value is the average of the high and the low prices for the securities on that date (for mutual fund shares, it is the net asset value).

Please keep in mind that Pickering College's fiscal year is July 1 - June 30. For donations to be credited in the current year, please make sure to send your gift by December 31, 2011.

Please contact Kim Bilous, Executive Director, Development at 905-895-1120 ext 260 to learn more about this exciting opportunity to save while supporting Pickering College!

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