Which donations get the zero inclusion rate?

Gifts in kind of publicly listed securities (and certain other property) to registered charities. Private-company shares and real estate follow different rules — specific advice needed.

Why does the corporate route add a CDA credit?

With a 0% inclusion rate, the entire gain is “untaxed gain” — and untaxed gains credit the CDA, extractable tax-free by election. Generosity that also builds your tax-free pool.

What funds a disability or deadlock buyout?

Disability buyout insurance exists for the first; deadlock needs mechanism design (shotgun clauses, auctions) plus a financing plan — insurance can’t cover a disagreement.

Donation-in-Kind + Buy-Sell Readiness

Donate securities in kind (tax avoided + full-gain CDA credit) and stress-test whether your buy-sell agreement is actually funded.

★ CHAPTER BRIEF

Two Appendix C disciplines. Giving: donate appreciated public securities in kind and the capital-gains inclusion rate drops to zero — full receipt, no tax, and for corporate gifts the entire untaxed gain credits the CDA. Protecting: a buy-sell agreement is only as good as its funding — eight trigger events, each needing a funded answer.

Selling securities to donate cash is the classic unforced error: it realizes the gain, pays the tax, and shrinks the gift. The in-kind route keeps the receipt identical and deletes the tax — and corporately, it manufactures CDA room in the process.

The buy-sell checklist covers what actually ends shareholder relationships: death, illness, disability, exit, divorce, insolvency, deadlock, licence loss. Most agreements name the events; few fund them. Insurance funds the insurable ones cheaply; the rest need valuation formulas and financing plans agreed while everyone still likes each other.

★ KEY POINT

Order of operations for giving: appreciated securities in kind first — never cash from sold securities. Same generosity, materially different after-tax cost.

⚠ WARNING

An unfunded buy-sell is a lawsuit with a signature line: the obligation to buy exists, the money does not. Review funding against current valuations annually — a five-year-old policy rarely covers today’s value.

Donate securities in kind

Fair market value of the securities

Adjusted cost base (what you paid)

Donating from the corporation

Corporate in-kind gifts credit the FULL untaxed gain to the CDA.

Tax avoided by donating in kind

$15,051+$60,000 to CDA

Selling first realizes a $60,000 gain and $15,051 of tax before the charity sees a dollar. Donating the securities in kind sets the inclusion rate to zero: same $100,000 receipt, no tax on the gain, and — the corporate bonus — the entire $60,000 gain credits the CDA, extractable tax-free later. Total advantage: $15,051 of tax avoided plus a $100,000 deduction worth ~$11,200 against corporate income.

Metric	Sell, then donate	Donate in kind
Tax on the gain	$15,051	$0
Donation receipt	$100,000	$100,000
CDA credit	$0 (half only if sold)	$60,000

Figures as of July 2026 · Ontario basis · Educational illustration, not advice — confirm current rates with your CPA.

Buy-sell readiness — check the triggers that are addressed AND funded

Death of a shareholder.Life insurance per shareholder, corporately owned, CDA-routed?Critical illness.CI coverage sized to the buyout, with an ROP rider considered?Long-term disability.Disability buyout coverage (distinct from income replacement)?Voluntary exit / retirement.Valuation formula agreed and a sinking fund or financing plan?Marital breakdown.Share-transfer restrictions and a funding source for a forced buyout?Bankruptcy / creditor seizure.Shotgun or compulsory-transfer clause with funding?Deadlock between shareholders.A resolution mechanism (shotgun, auction, mediation ladder)?Loss of professional licence.Mandatory transfer terms where regulation requires it?

Trigger events funded

0 / 8

8 of 8 trigger events unfunded. An unfunded buy-sell agreement is a lawsuit with a signature line.

Death of a shareholder — Life insurance per shareholder, corporately owned, CDA-routed?
Critical illness — CI coverage sized to the buyout, with an ROP rider considered?
Long-term disability — Disability buyout coverage (distinct from income replacement)?
Voluntary exit / retirement — Valuation formula agreed and a sinking fund or financing plan?
Marital breakdown — Share-transfer restrictions and a funding source for a forced buyout?

Loading the calculator…

Get your full PDF report

Your inputs, your results narrated in plain English, and the questions to bring to your advisor — sent securely to a verified email. We’ll text you a code first; requesting a report does not create an advisor–client relationship.

Request an advisor match

Questions to ask your advisor

Ask your CPA

Which holdings carry the largest unrealized gains — the best candidates for in-kind giving this year?

Ask your Insurance

Are the death, CI, and disability triggers in our buy-sell actually funded at current valuation?

Ask your Tax counsel

Does our buy-sell’s structure (criss-cross vs corporate redemption) still make sense under current CDA rules?

Continue in book order

From Chapter 5Corporate Investment-Income Comparator From Chapter 8COLI vs Taxable Portfolio From Chapter 17Success Squad Mapper

Educational illustration, not advice. This tool is provided for educational purposes only and does not constitute financial, tax, legal, accounting, or insurance advice. Results are estimates, not promises — hypothetical illustrations are projections only. Figures use Ontario rates as of the date stamped above; rates and limits change. Confirm current figures and your specific situation with a CPA, tax lawyer, and licensed insurance advisor before acting.