Gifts of Security
Did you know the Canada Revenue Agency does not apply a capital gains tax on publicly traded securities when they are donated directly to a charity?
HOW DOES THIS BENEFIT YOU?
When shares are sold, there are typically taxes on the capital gains, even if you plan to donate the proceeds. When you donate your securities directly to the Mental Health Foundation of Nova Scotia, the capital gains are not subject to tax, and you will benefit from a tax receipt for the full value of your eligible securities.
AN EXAMPLE: If you purchase shares at $1,000, and the value of those shares increases to $2,500, the capital gains are $1,500. For example, in 2021 under the current tax rules, 50% of the gain ( $750) is added to your taxable income in the year of your donation. If you sell those shares and donate the proceeds, you will owe tax on the $1,500 capital gains. When you donate the shares directly to the Mental Health Foundation of Nova Scotia you do not have to pay the capital gains tax, and your net tax advantage will be larger.
TO DONATE SECURITIES:
Step 1: Talk with your adviser to ensure this is right for you
Step 2: Let the Mental Health Foundation of Nova Scotia know that you are interested in donating a gift of securities
Step 3: Complete the transfer form to The Mental Health Foundation of Nova Scotia,
Step 4: Instruct your broker to transfer your securities to the Mental Health Foundation of Nova Scotia.
A charitable tax receipt will be issued for the closing price of the securities on the day of the transfer to the Mental Health Foundation.
Should you have any questions, please contact the Foundation team at info@mentalhealthns.ca
