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Maximize Your Tax Breaks by Donating Stocks to Charity
This article explores a unique way for Canadians to avoid paying tax on their capital gain while also getting a larger tax deduction.
By donating stocks directly to registered charities, you can bypass the usual 50% taxable income from selling stocks for profit.
Here’s the full article.
- Under Canadian law, when you sell stocks for profit, half of that gain is considered taxable income. There's another way to avoid this tax and do some good in the process.
- Donate your stocks directly to a registered charity. It's important to note that this only works if you donate actual securities (like shares or bonds) rather than cash proceeds from selling these assets.
- Always consult with your tax accountant first. Identify which rising-value stocks you'd like to donate and confirm whether your chosen charity accepts such donations.
- The benefits are twofold - not only does the charity receive the full value of donated shares but as a donor, you get a receipt for the market value of those shares instead of what they originally cost.
Charities play crucial roles in our communities. Senior centers provide essential services to improve seniors' well-being thus promoting physical & mental health while reducing feelings of loneliness.
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