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Donating securities to charity? Tax changes to watch for [Video]

Before we can talk about what the change is, you got to talk what the history is first.

Right.

So a few years ago, the government put in new rules to encourage people to donate more to charities using stocks or public securities.

Yes, so the rule as it exists now is if we– so typically speaking, if I dispose of capital property, if I sell stocks and shares, I will have a capital gain upon which I need to include 50% of that in my income and pay tax on that. With the donation of public securities, when I donate those to a charity, my inclusion rate drops from 50% to 0%. So I don’t need to include the value and that gain in my taxes. So I’m not paying any tax on that.

In addition, I get the benefit of the full amount of that charitable tax or that …

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