Time to check in to see what you've learned!

Take this short, three-question quiz to test your knowledge on giving in Canada.

Marisa owns shares of a mutual fund worth $16,000 that she originally purchased for $10,000. If she sells her assets, what is the impact to her from a tax perspective

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.

Her taxable income will increase by $6,000.

Her taxable income will increase by $16,000.

Since capital gains are taxed at 50 per cent, she will only pay tax on $8,000.

Since capital gains are taxed at 50 per cent, she will only pay tax on $3,000.

True or False. When donating stocks to charity the book value or purchase price of the shares is used to calculate the donation tax credit.

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.

True

False

True or false. The tax advantage of donating appreciated securities is the same for every donor, regardless of their income.

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".

True

False

You got {number correct}/{number of questions} correct answers

Let's Begin!

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 got {number correct}/{number of questions} correct answers

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.

You got {number correct}/{number of questions} correct answers

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.