L.M. Montgomery Land Trust

Like all registered charities, the L.M. Montgomery Land Trust can accept donations of securities, issue income tax receipts for their full value, and enable a generous tax credit that greatly reduces the cost of making the donation.

In 2006 the federal government eliminated the tax on capital gains for securities when they are donated to charity. Publicly traded securities include stocks, bonds, mutual funds, shares, and income trust units.

If you hold securities that have increased in value since you bought them, donating them to the Land Trust can accomplish two things:

1. make a significant gift towards protecting 622 acres of seascape land in the Park Corner-French River area
2. make this gift at a low cost to you.

For example: you donate $10,000 worth of shares to the Land Trust, that cost you $1,000 to buy several years ago. Your capital gain on those shares is $9,000.

By donating them, your tax on that capital gain is $0.

Assuming you have other donations of at least $200, the tax credit for your $10,000 donation is $4737.00 (using the combined tax rate for PEI of 47.37%).

Because you paid no tax on your capital gains, and because you can now claim a tax credit of $4737.00, the real cost of donating your securities is $5,263.00.

The important thing to remember is that the securities themselves must be donated to the Land Trust – do not cash them first, and donate the money. This negates the forgiveness of the capital gains tax.

For more information on helping the L.M. Montgomery Land Trust through the donation of securities, please contact us, or talk to your Financial Advisor.