Performance figures for each account are calculated using time weighted rate of returns on a daily basis. The Composite returns are calculated based on the asset-weighted monthly composite constituents based on beginning of month asset mix and include the reinvestment of all earnings as of the payment date. Composite returns are as follows:

John Nicola Answers Your Tax Questions: Donating Appreciated Shares to Charity

Watch Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s Taxation Environment here.

In his webinar on November 2, 2021, CEO & Chairman, John Nicola, provided exclusive insight into Canada’s taxation environment and explained how to optimize your tax planning strategy in light of current regulations and took the time to answer viewer questions. Each week, we will publish his answers to your questions.

How likely is a change in the current position where one can donate appreciated shares to a charity and avoid capital gains yet still get full charitable credit? Should one act now?


John’s Response:

I think that the heat the government would get from the entire philanthropic and charitable community would not be worth it.

The government tends to look at things in terms of expenditure, for example when they consider RSP issues they ask themselves how much income tax they are losing due to people making RSP contributions? The tax cost of gifts to charitable organizations, like appreciated shares, is really like a rounding error. If the government were to implement a change in their current position, the charities would be making the point that they are doing critical work in their communities, especially during the pandemic, and that this capital is needed to continue their work. So, I don’t think the government wants to go there. 


This material contains the current opinions of the author and such opinions are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities commissions.