Donating Shares to Charity - ATO Update
30 July 2007 at 4:23 pm
Donors who make a gift of listed shares to charity may now be eligible to claim a tax deduction under new laws that came into effect from July 1, 2007.
A donation of listed shares valued at $5000 or less and acquired at least 12 months earlier can now be eligible to claim the deduction.
The Australian Tax Office has released a Fact Sheet explaining:
– the requirements that must be met for this type of gift to be tax deductible
– the amount that is allowed as a gift deduction
– when a deduction can be claimed, and
– other matters such as capital gains tax and shares contributed for a right to attend a fundraising event.
The Fact Sheet offers a number of case studies and scenarios to explain the requirements such as:
Fiona purchased a parcel of 100 shares in an Australian listed public company on 5 August 2004. On 15 January 2008, Fiona donated the parcel of shares to a DGR. The market value of the shares on 15 January 2008, as listed on the Australian Stock Exchange, was $4.50 per share.
Fiona has donated shares in an Australian listed public company that she purchased more than 12 months before the gift was made. Fiona is entitled to a deduction of $450 being the market value of the shares on the day the gift is made to the DGR.