Maximize your tax savings - gifts of stocks and bonds

Eliminate capital gains and leverage your tax-savings
Perhaps you’re considering a gift to the school for the Annual Campaign – thank you! You probably know that if you make a gift you will receive a tax-receipt for the full amount of your gift.

 

Did you know that you can save even more on your taxes?

Yes, and in some cases a lot more. Here’s how:*

Imagine you want to give $5000 to help the band program purchase a shiny new trumpet or two. Or maybe soccer goals for the PE program. Or perhaps you want to provide a meaningful bursary for a student who couldn’t afford Aspengrove otherwise.

You were about to make an online gift using your credit card before you read this helpful page. Then you began to think about those ACME stocks you have had a good run with.

If you have $5000 worth of stock that you purchased some time ago for only $1000, you might consider gifting that stock to the school, rather than making your gift with cash. There are big savings in store for you if you do.

When you gift appreciated securities  (stocks, bonds, mutual funds etc. that have gone up in value) you get the same tax receipt you would have if you made your gift with a cheque or a credit card, in this case, $5000. You also avoid the capital gains tax that you would have had to pay were you to sell the securities – in this case, that’s more than $1200 in extra savings as an added bonus for thinking about how you make your gift.

But you love the ACME company you say? You don’t want to sell?

In fact you could take that $5000 in cash you would have otherwise given the school and buy that very same stock again – you would still have $5000 worth of ACME company, the band your daughter plays in would have those shiny new trumpets – and you would not be facing $4000 in capital gains one day!

You should check with your accountant of course but if you have interest in gifting appreciated securities, please get in touch with David Hutchison in the Advancement Office today.

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*again, this is just an example. Your mileage may vary. Please check with your accountant to see how it applies to your personal situation.

 

 

Can you help?

I want to make a difference!

Join in with the rest of the Aspengrove community and make a difference with your gift to the Annual Fund today.