Gifts of Appreciated
Stock
(or other
appreciated 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 (called tangible personal property) can be utilized as gifts with the possibility of tax benefits. These are assets such as real estate, antiques, coin or stamp collections, and art. However, these are reviewed on a case-by-case basis. For more information about gifts of any 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 Self Regional Healthcare by Future
Focus. Please report any problems to webmaster.
Revised: April 15, 2010 11:40 .