If you are considering a charitable contribution this year, it is in your best interest to seek out the most effective manner in which your money can work for you. Gifting appreciated stock is one of the most effective means of tax savings available.
The benefits of gifting appreciated stock
1. You will be eligible to receive an income tax charitable deduction for the full fair-market-value of the stock at the time of the gift.
2. Capital gains taxes on the stock are avoided.
3. The satisfaction of knowing your money is invested in a cause important to you..
To qualify for these special tax advantages, the security must have been held for at least one year. A gift of stock in certificate form should be postmarked by December 31 or your financial advisor can arrange for a yearend gift of stock from your account.
Your gift of appreciated stock is fully deductible up to 30% of your adjusted gross income. For example, if your adjusted gross income is $100,000, up to $30,000 of long-term appreciated stock and other capital gain property may generally be deducted, although high-income donors may be subject to a partial phase-out of itemized deductions. Any excess can generally be carried forward and deducted over as many as five subsequent years.
Please feel free to contact Matt Noble of Fraternity Management Group at 520-990-3250 or matt.noble@fmgtucson.com with any questions you may have.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax adviser. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.