Sasha Ivanov gifted Canadian public securities to a public charity in 2020.The securities had a market value of $22,000 and an ACB of $8,000.Sasha is in a 40% tax bracket.Which of the following will apply to Sasha?

Question

Quizplus · Accepted Answer

When donating publicly traded securities to a registered charity in Canada, the donor does not have to pay capital gains tax on any increase in the value of the securities from the time of purchase to the time of donation. Therefore, Sasha will have a capital gain of $0. Additionally, the donation receipt will reflect the market value of the securities at the time of the donation, which is $22,000.

Sasha Ivanov Gifted Canadian Public Securities to a Public Charity