Time to check in to see what you've learned!
Take this short, three-question quiz to test your knowledge on giving in Canada.
Selling any asset in a taxable or non-registered account may generate a capital gain or capital loss. To calculate a gain or loss, simply subtract the final value of the investment when sold from the initial amount of the investment. In this example, Marisa could sell her investment for $16,000. Her initial cost was $10,000. Her capital gains are $16,000 - $10,000 = $6,000.
In Canada, only 50 per cent of capital gains are included in taxable income. So, Marisa will have additional taxable income of $6,000 x 50 per cent = $3,000.
False.
Only the fair market value of a security is used to calculate the amount of a donation. That's why securities that have the highest "unrealised capital gains" are the best candidates for donation.
False.
The rules for calculating the amount of the donation receipt are the same regardless of how the donation is given (cash or appreciated security), there is a bigger tax benefit for higher income earners. That's because in our progressive tax system the higher a taxpayer's annual income, the more income tax they pay as a percentage. This is called their "marginal tax rate".
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We created this learning module specifically to help people like you. The more you know, the more effective you may be at supporting your favourite causes.
You know a thing or two already...
We created this learning module specifically to help people like you learn even more. The more you know, the more effective you may be at supporting your favourite causes.
Impressive!
You certainly know a thing or two about the Canadian charitable landscape! We created this learning module specifically to help people like you hone your knowledge even more. Because, the more you know, the more effective you may be at supporting your favourite causes.