Along with assisting the University of New Brunswick's students and programs, there are tremendous benefits to you for donating shares and other investments to the university.
As of 2006, when you donate shares directly to UNB, you will not pay capital gains tax normally attached to the sale of securities. You will receive a tax receipt for the full value of the shares.
This policy also applies to bonds, mutual funds and other forms of capital property listed on approved stock exchanges.
Please note: This tax benefit only applies to securities transferred directly. If you choose to sell them and give the proceeds to UNB, you will be taxed on the gains. Your broker can complete the necessary forms to transfer your securities to UNB.
Below is an example of the benefits of donating shares directly.
| Tax benefits to donating shares | Sell shares and donate cash | Donate shares directly |
|---|---|---|
| Purchase value of shares | $2,000 | $2,000 |
| Present value of shares | $10,000 | $10,000 |
| Capital gain on shares | $8,000 | $8,000 |
| Taxable capital gain | $4,000 | $4,000 |
| Tax payable on capital gain | $1,800 | $0 |
| Tax credit on donation | $4,500 | $4,500 |
| Total tax savings | $4,500 | $6,300 |
*For illustration purposes, we have used an average marginal tax rate of 45 per cent.
For more information contact Ashley Hoyles at (506) 458-7974.
