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Gifts
of Appreciated Stock
(or
other assets)
 The
gift of an asset, often common stock or mutual fund shares,
is a valuable way to make a contribution to a charitable
organization and receive tax benefits based on the value
of the asset(s).
Suppose Richard
and Terri had 300 shares of XYZ Corporation that they purchased
at $15 a share some years ago. The current value in today's
market is $36 a share. If they sold the stock in the market,
they would have a taxable, long-term capital gain on the
difference between their cost and what they would receive
from the sale ($36 minus $15 = $21 capital gain per share.
300 shares X $21.00 = $6,300 in capital gains).
Richard and
Terri could sell the stock, pay the tax on the capital gain,
and either keep or donate the proceeds. If, however, instead
of selling the stock, they gave the 300 shares to charity,
they would not incur any capital gains and would be able
to deduct the current value (300 shares X $36 = $10,800)
on their tax return as a charitable gift.  By
donating the stock, the charity receives a larger gift than
it would receive if Richard and Terri first sold the stock
and then donated the proceeds after deducting the capital
gain taxes. Also, Richard and Terri receive a greater tax
deduction by giving the stock directly to the charity and
avoiding the capital gain tax.
While the
gift of appreciated assets often is stock, other marketable
assets, such as land, antiques, and homes, can be utilized
as potential gifts with the possibility of valuable tax
benefits. However, these are reviewed on a case-by-case
basis. For more information about gifts of appreciated assets,
please contact us so we can
respond to your specific needs.
Return
to Wills and Bequests or to
Charitable Lead Trust story.
Please
note, individual financial circumstances will vary. The
information on this site does not constitute legal or tax
advice. As with all tax and estate planning, please consult
your attorney or estate specialist. All material is copyrighted
and is for viewing purposes only. Use of this site signifies
your agreement with the terms of use.The
content in this Planned Giving section has been developed
for Bay Area Rescue Mission by Future
Focus.
Please report any problems to webmaster.
Revised: August 16, 2006 12:58.
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