Stock & Mutual Funds
Did you know that gifts of appreciated securities, including stocks and bonds, can give your family a big tax benefit even in a fluctuating market? These gifts can reduce the capital gains you’ll pay without changing your portfolio. Many of our supporters choose to take advantage of this especially smart way to give.
What are the tax benefits of donating appreciated assets?
By donating stock rather than selling it, you will avoid paying a capital gains tax. Capital gains tax is a tax on the profit made from the sale of a non-inventory asset like stock. These can be as high as a federal tax rate of 20% for long-term holdings (or stocks being held for more than one year). If you donate a long-term holding and itemize deductions, you can also take a charitable deduction for the entire donation.
How can transferring stocks can save me money?
When you donate stocks, you avoid paying capital gains tax. Let’s say you want to give a gift of $1,000 to the Levine JCC this year. If you want to sell the stock before donating it, you would have to sell about $1,400, and pay around $400 in taxes on the sale of the stock before donating the remaining $1,000. But if you transfer the stock directly to our organization, you only need to transfer the $1,000 worth of stocks, and you won’t have to pay the tax.
Would you like to learn more about what others do with their appreciated stocks or other equities?
Contact Melanie directly at 704.554.2051 for additional information.
The gift is considered completed on the date the securities are transferred and received into the account of the Levine JCC. You may receive an income tax-deduction for the full fair market value of the securities on the date the gift of securities is complete. The fair market value, for tax purposes is the average of the high and low trading prices of the securities on the date the transaction is complete. Gift securities may be deductible up to 30% of your adjusted income. Excess deductible amounts may be carried forward for five years.
TO LEARN MORE ABOUT MAKING AN IMPACT AT THE LEVINE JCC, PLEASE CONTACT:
Annie Keith at 704-944.6800 or [email protected]