Gift In Kind (Real Property)
Can I leave real property to the Foundation and if so, how do I benefit with regard to taxes? The short answer is yes. This is referred to as a “gift in kind”. When you make such a donation, Revenue Canada considers that you have disposed of it at fair market value. You will be required to pay tax on 50% of the difference between the “Fair market value” and what you originally paid for the property. However, Mission Community Foundation will issue a tax receipt for the full market value which you can use as a tax deduction and thus avoid having to pay capital gains tax. You can also use any remaining amount of tax credit to reduce up to 100% of other taxable income during the year of your real property donation.
Stocks, Bonds or Mutual Funds
Is there any benefit in donating stocks, bonds, or mutual funds? This is also regarded as a “gift in kind” and the same rules apply. But if you donate stocks, bonds or mutual funds directly to the Foundation, you are only required to pay tax on 50% of the capital gains; an even bigger saving!
