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.

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.

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