The Jewish Community Foundation of Montreal

Gifts of Marketable Securities Calculator

For Corporations

Gifts of Marketable Securities

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 Toolkit Calculator will determine the after-tax cost, including the tax save by not paying tax on the capital gain and the dividend which would otherwise have been taxed as an Eligible Dividend.

Assumptions:
1. The donor is a Quebec taxpayer.
2. Corporate donor earns an active business income of over $500,000. The applicable tax rate in 2019 is 26.60%.
3. The tax savings by creating a Capital Dividend Account (see “Gifts of marketable Securities” – Corporate Donor) will be based on saving the tax on an Eligible Dividend (40% in 2019).
4. A corporate donor has a December year-end.

The Toolkit Calculator is provided as an aid only and a donor should consult with a professional advisor before making a gift.

Consult with a professional advisor

Contact us to schedule an appointment with our advisors