Something different... Turning shares into tax-deductible gifts

[moyjos]

(From Tasmanian Land Conservancy Newsletter, Issue 41 Winter 2014)

"A very effective way to sell parcels of shares and maximise the benefit of maxing a tax-deductible donation to the TLC, is through the not-for-profit charity, Sharegift Australia.

Often selling shares through a financial broker attracts a fee that can substantially affect your return. The Sharegift Australia Independent charitable Fund provides a convenient and cost-effective way to sell and then donate parcels of shares without paying a brokerage fee.

For example, if you bought a parcel of shares for $500 and they increased in value to $1000 and you donated them to the TLC via Sharegift Australia, you would have a capital gain of $500 (reduced to $250 if the shares were held for longer than 12 months). This gain would then be offset with a tax deduction of $1000 and Sharegift Australia would pass on the full market value of the shares (on the day of trade) without charging any fee as a donation on your behalf.

Www.sharehiftaustralia.org.au

 

[datto]

What if the charity gave you a "cash back" gift after you donated the shares? Nifty way of avoiding income tax/CGT.

 

[redwing]

For those small parcels of shares that may cost someone more to sell than keep?

 

[Terry_w]

If you really want to make a donation to a registered charity you could leave them an asset pregnant with CGT upon your death as when they sell it no CGT would be payable.

 

[datto]

Think I might become a charity or a religious organization.

 

[Beanie Girl]

Think I might become a charity or a religious organization.....

to receive pregnant assets?

 

[Ausprop]

all this is to save the brokerage fee for the sale? because I can't see how this is much different to just selling the shares and donating the cash.

what if you were to take a margin loan on the shares for the purpose of making a donation?

 

[alexlee]

Sometimes people end up with shares worth below the $500 minimum, such as from spinoffs, distributions, etc.

 

[datto]

to receive pregnant assets?

I'll abort....................