If you have questions, please contact Seth at [email protected].
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). For example, suppose Robert and Suzanne own 300 shares of XYZ Corporation that they purchased at $15 a share years ago. And suppose the current value in today's market is $36 a share. If they sold the stock , they would have a taxable, long-term capital gain on the difference between their cost and the current market value ($36 minus $15 = $21 capital gain per share. 300 shares x $21.00 = $6,300 in capital gains). The 2010 federal income tax on this gain could be as much as $945.
Robert and Suzanne could sell the stock, pay the tax on the capital gain, and keep or donate the proceeds. If, instead of selling the stock, they donate the 300 shares to their charity, they would not incur any capital gains tax. Better yet, they would be able to deduct the current value (300 shares X $36 = $10,800) as a charitable gift. By donating the stock, JRR receives more than if Robert and Suzanne sold the stock and then donated the proceeds after deducting the capital gain taxes ($10,800 instead of $6300). Also, Robert and Suzanne receive a greater tax deduction by donating the stock directly to the charity and avoiding the capital gain tax. A win-win for all.
If you wish to make a gift of securities, please contact Seth Williams at Judaism Alive/Jewish Rock Radio at 314.991.0909 or [email protected]
The tax implications of gifts of appreciated stock can vary from person to person. Please consult your tax advisor.