VIEWPOINTS LIFE INSURANCE SEG FUNDS MUTUAL FUNDS TAX UPLOOK RRSP
Is capital gains tax due on gifts of investment funds?
If, you donated any of the following types of investment fund properties to a registered charity or other qualified done, you may be able to utilize some tax advantaged planning:
- · a share of the capital stock, of a mutual fund corporation, or a unit of a mutual fund trust; or
· an interest in a related segregated fund trust
Under proposed changes, where there is no tax advantage in respect to donating the gift, the full amount of the capital gain realized on the gift is eligible for an inclusion rate of zero. However, if there is a tax advantage, only a portion of the capital gain is eligible for the inclusion rate of zero. The remainder is subject to an inclusion rate of 50%.
You or your spouse or common-law partner may be able to claim a non-refundable tax credit for these gifts. For more information talk to your tax accountant.
Source: CRA
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