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Gifts of Appreciated Securities
 (or
other assets)
The gift of an appreciated 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. Donor stories and photographs
are for purposes of illustration only. 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 California Symphony by Future
Focus. Please report any problems to webmaster.
Revised: March 19, 2007 15:49.
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