NEWS

Capital Gains Tax Eliminated on Gifts of Securities

In May of 2006, Minister of Finance Jim Flaherty delivered the 2006 Federal Budget and announced that publicly listed securities donated to public charities would be exempt from capital gains tax. This means that a greater tax savings can now be generated by making a gift of publicly traded securities (stock, bonds or mutual funds), as compared to a donation of cash following the sale of the same security.

Under new taxation rules when publicly traded securities are donated directly to Strathroy Middlesex General Hospital Foundation, none of the capital gains tax is owed that you would be required to pay if you sold them. This means that your taxable capital gain will be 0% rather than the normal 50%.

The new rules allow you to:

• receive a charitable receipt for the market value of the securities    gifted

• realize significant profits from appreciated securities you wish           to donate

• pay no income tax on the gains realized

• make a generous gift in support of health care

If you are interested in saving money on income tax and would like to help the hospital, please contact Sue McLean at (519) 245-5632.