Gifts of Capital Property
Investing in the future of health care
Capital property is any property of value that you hold as an investment. It can include real estate, marketable securities (such as stocks and bonds), shares or debt obligations of private corporations.
When capital property is sold, there can be significant taxes owed by you or your estate as a result of capital gain. By donating a gift of capital property to charity, you may be able to reduce the taxes you or your estate would have to pay.
The federal government has created special incentives to encourage gifts of Publicly Traded Securities to registered charities such as The Health Care Foundation of St. John’s Inc. For instance, the May 2, 2006 Budget completely eliminated capital gains tax on gifts of appreciated securities to public charities.
There are many types of capital property that can be potential gifts and they can be made at any time. If capital property is given as a planned gift, it can be given through a bequest, through a gift of residual interest or as part of a charitable remainder trust. This kit contains information on each of these methods of planned giving.
As with other planned gifts, the individual needs and personal objectives of the donor and his/her family should be carefully considered when deciding how proceeds of capital property are used.
This summary is of a general nature only. It should not be construed as legal or tax advice. Readers should seek independent tax, legal and financial advice and consult their own tax, legal and advisors with respect to individual circumstances.
Updated 4/14/2009
