Get a tax deduction for donating shares


If you have shares that are not worth selling or not worth much, you should consider giving them to charity.


Give your shares away and get a tax deduction will sell your shares.

What’s more, if the shares are worth more than $50, Share Gift Australia will let you nominate which charity you wish for the cash (otherwise they will give them to a charity someone else has nominated).


No brokerage

Share Gift Australia does not pay brokerage on selling your shares, which means the full value will go to the charity.


Tax consequences

It is best to think of donating shares as two separate transactions:

  1. A sale of shares
  2. A donation


Transaction 1: Sale of shares

The difference between the sale price of shares and the purchase price will result in a capital gain or loss.


Transaction 2: Donation

You will receive a donation receipt to allow you to claim the proceeds of your shares.


Simple example – Dividend reinvestment received after shares sold:

James sold shares but then received an extra $40 worth of shares because of a dividend reinvestment. He gives the shares to share gift Australia.

James makes a capital gain of $5 (the shares have appreciated slightly on the price on his dividend slip), and can claim an expense for his donation of $40.


Complex example – New company shares received as part of original company restructure:

Andrea received Treasury Wines shares as a result of having Forster’s shares. She decides that she doesn’t want the Treasury Wines shares anymore and arranges for them to be gifted to share gift Australia. Andrea gets a donation receipt of $1,245 the value of the shares. The calculation of the capital gain or loss is complex so Andrea’s accountant does this. Andrea’s accountant finds that Treasury Wines shares purchase price are calculated at 19.96% of the original Forster’s shares purchase and calculates that Andrea has made a small capital loss on the sale.

Posted in Shares, Tax

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