charitable gift in kind

[gouthro]

Hello

I have made a charitable donation in kind of a gift of stocks to a registered charity.  As experts on here will know, when a gift of stocks is made to a charity, one does not pay tax on the capital gain.  My problem is that TD Investorline has this sale noted on a T5008 silp.  So, I am wondering how Canada Revenu will recognise that this is a gift to charity, if I include the T5008 in my income tax?  Or, did TD Investing make a mistake in issuing this T5008 slip?  I have called them and they don"t seem to understand the problem.  Or, they are not familiar with how they deal with stocks donated to charity. any help greatly appreciated.

thanks g

[Geo123]

Hello gouthro,

For donated securities, It is one or the other, not both – see below.

1. Donating securites via Capital Gain section:
>>Goes to 'Schedule of charitable donations Federal'
Gifts of publicly traded shares and stock options
If you donated certain types of capital property, you may be entitled to an inclusion rate of *zero* on any capital gain resulting from the donation of any of the following properties to a qualified donee .........
>> In Interview >> Capital gains and ABIL (including with T5008 >> Stocks, mutual funds and other non depreciable property "+"
-Total proceeds from the sale of the shares or property
-Adjusted cost base of the shares or property
-Expenses incurred in making the disposition
>>-Is this disposition a gift to charity, or to Canada or a province? -->Yes-inclusion rate reduced-T1170
-If a gift, enter the eligible amount of the gift
-If a gift, enter the Class No. of property
>>For shares enter Class 12
  https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/completing-schedule-3/determining-your-taxable-capital-gains-losses/gifts-publicly-traded-shares-stock-options.html
 
 2.Donating via Canadian charitable donations section as gift-in-kind - with receipt from Charity 
(as opposed to  Donating securities via Capital Gain section T-1170 with inclusion rate of 25%) :
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it297r2/archived-gifts-kind-charity-others.html
For non-cash donations (gifts-in-kind), **a charity must issue a separate receipt for each gift**
In Interview go to >> Canadian charitable donations (other than per T4 slip and other slips)
Amount of donation   [$amount]
Organization that received the charitable donation [MyDonationInKind]
Enter the Quebec amount if different
Specify the nature of the donation.  [Gift in kind]  < - - - SELECT ‘In kind’