Gifts of Shares to Public Charities 100% Exempt
Important and time-sensitive announcement regarding BCE Shares
The federal government made gifts of shares to public charities 100% exempt from capital gains tax in May 2006, and extended the break to private foundations in March 2007.
On July 4, BCE announced it has reached a final agreement for its purchase by the Ontario Teachers Pension Plan Board and its partners. Closing will occur on or before December 11, 2008. Shareholders will receive $42.75 per common share, the same price announced last June.
BCE shareholders must sell or donate their shares by the closing date, as the shares will cease thereafter to trade on the stock exchange. Shareholders will likely incur significant capital gains upon redemption (sale) of their shares, due to the appreciated value. There is a tax-smart alternative.
Innovative strategy to reduce taxes
If you hold shares, you can eliminate some or all capital gains taxes by donating your shares to a Registered Charity.
This means that your shares can be directly gifted to the National Estonian Foundation of Canada with no capital gains tax. You may also choose to donate a portion of your shares. In that case, the tax credit resulting from the donated shares can be used to minimize taxes owning on the balance of the shares.
How to donate shares to Charity
1. Complete a ‘donation of publicly listed securities” form obtained through the Foundation office (or download it from the web site www.estonianfoundation.ca – follow the tab “Make a Donation”.
2. Direct your broker to donate your shares to the National Estonian Foundation of Canada.
3. An acknowledgement of your generous gift will be sent promptly and the tax receipt for the current year will arrive after the year end.
For more information
Contact Maimu Mölder at the NEFC office at tel. 416-465-5600 or .
Public Service Investment Announcement courtesy of the National Estonian Foundation of Canada