Gifts of Appreciated Stock (or Other Assets)
Goal: Avoid capital gains tax on securities sale
Benefit: No capital gains tax and charitable deduction based on fair market value
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 gains tax. Also, Richard and Terri receive a greater tax deduction by giving the stock directly to the charity and avoiding the capital gains 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 Bequests, to the Legacy Giving home page, or to the Quick Guide to Legacy Gifts.
We would like to help make certain your intentions are executed accordingly. For more information about the importance of having a will, please email or call the Vice President of Development, Sharon A. Jones, at 352 379-6226. We are happy to answer questions and offer suggestions confidentially based on your personal circumstances.
Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice, either in whole or in part. 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 Gift Planning section has been developed for Haven Hospice by Future Focus. Please report any problems to section webmaster.