Gifting Appreciated Stock

Benefits to the Donor

 

  1. The donor is entitled to a charitable deduction on their tax return for the fair market value of the stock on the date of donation.
  2. The charitable deduction taken on the return can be up to 30% of adjusted gross income for the year.  If the fair market value of the stock exceeds 30% the unused portion can be carried forward for the next five years.
  3. The donor will not have to pick up capital gain on the stock that is being donated, therefore saving the tax that would have been due on the capital gain had they sold the stock and then donated the cash.
  4. By donating appreciated stock the donor is able to get the stock out of their estate and reduce potential estate tax.
  5. It will make your heart sing because some children are lifted up into a home, health and hope.

How donating appreciated securities can reduce taxes

Source:  Fidelity Charitable

This is a hypothetical example for illustrative purposes only. This chart assumes the donor is in the 39.6% federal income bracket with an adjusted gross income (AGI) of $500,000. State and local taxes, the federal alternative minimum-tax and limitations to itemized deductions applicable to taxpayers in higher-income brackets are not taken into account. Please consult your tax advisor regarding your specific legal and tax situation. Information herein is not legal or tax advice. *Assumes all realized gains are subject to the maximum federal long-term capital gain tax rate of 20% and the Medicare surtax of 3.8%. Does not take into account state or local taxes, if any.

Call 314-812-1799 to talk about it;
Email:  Dwyatt.Gantt@ChildrensHope.net