Giving Securities

Canada Customs and Revenue Agency has recently eliminated any capital gains on securities donated to registered charities. An individual can donate securities and receive a tax receipt for the fair market value, and pay no tax on any capital gains of the security. For example,
someone who purchased securities at 5,000 that are now worth $15,000 can transfer those securities to a charity, receive a tax credit on the full $15,000 ($6,600 at
2005 Saskatchewan rates), and, under a new rule adopted this year, not report the $10,000 capital gain on the income.