Publicly Traded Securities
Federal incentives have made it very attractive to donate publicly traded securities that have appreciated in value.
You can donate shares, bonds, bills, warrants, futures and/or units in mutual funds traded in Canadian, American or major international exchanges to Victoria University. You will receive a tax receipt for the full appreciated value of your gift, and as of May 2, 2006, you will not be liable for any capital gains tax. The receipt value will be based on the closing trading price on the day that your gift is received by Victoria University and the cash value of the securities will be used to support the university.
Employee Stock Options
If you acquire publicly traded securities through employee stock options and donate these securities to Victoria, you will qualify for a reduced employment benefit, assuming you meet with certain conditions. The shares must be donated in the same year and within 30 days of the stock option being exercised.
|
Tax Savings by Making a Gift of Appreciated Securities* |
Sell Stock and Donate Cash Proceeds |
Donate Stock |
|
Gift Value |
$100,000 |
$100,000 |
|
Cost Basis |
$20,000 |
$20,000 |
|
Capital Gain |
$80,000 |
$80,000 |
|
Taxable Gain |
$40,000 |
$0 |
|
Tax Credit* |
$50,000 |
$50,000 |
|
Tax on Gain* |
$20,000 |
$0 |
|
Tax Savings |
$30,000 |
$50,000 |
* Assuming tax rate of 50% for ease of illustration
Contact
If you would like more information about making a gift of stocks and securities to Victoria University, please contact the alumni office at 416-585-4500, 1-888-262-9775, or vic.alumni@utoronto.ca and we will direct your call.