Gifts of Marketable Securities
Calculator
Our custom-built Financial Calculators are designed to help professionals determine the tax impacts of making various charitable gifts.

Gifts Of Marketable Securities
For Corporations
The Canadian tax system provides an additional incentive when eligible Marketable Securities are donated. Generally when property, other than cash, is donated to a registered charity, the donor is considered to have realized a capital gain to the extent that the fair market value of the property is greater than the cost. However, when publicly traded stocks, bonds and mutual funds are donated this rule does not apply and the capital gain is not taxed.
The following will help determine the after-tax cost, in both percentage terms and absolute dollars, of gifting marketable securities. Simply enter the fair market value and adjusted cost base of the donated securities as well as the appropriate tax rate and the calculator will determine the after-tax cost, including the tax saved by not paying tax on the capital gain.
A corporate donor of eligible Marketable Securities has an added advantage in that 100% of the gain, rather than 50%, will form part of the company's Capital Dividend Account and will be available to be paid out tax free to individual shareholders. The calculator will determine the after-tax cost, including the tax saved by not paying tax on the capital gain and the dividend which would otherwise have been taxed as an ineligible dividend.
Taxable Active Income
A federal tax rate of 15% is used for taxable income greater than or equal to $500,001.
A federal tax rate of 9% is used for taxable income less than $500,001.
A Quebec tax rate of 11.5% is used for taxable income greater than or equal to $500,001.
A Quebec tax rate of 3.2% is used for taxable income less than $500,001.
Taxable Investment Income
A federal tax rate of 38.67% is used for taxable investment income.
A Quebec tax rate of 11.5% is used for taxable investment income.
Assumptions:
- The donor is a Quebec taxpayer.
- The full amount of the donation will be eligible for a tax credit at the given rate.
The Calculator is provided as an aid only and a donor should consult with a professional advisor before making a gift.
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