Gifts of appreciated securities include stocks, bonds, mutual funds, and other assets. Smart gift planning combines charitable intent with cost-efficient planning techniques. Of critical importance is the kind of asset used to fund the gift. Usually, long-term appreciated property can generate the most favorable tax benefits. The reason is that gifts of such property provide a double benefit — a charitable deduction, in most cases, for the full fair-market value of the property — plus avoidance of any potential capital-gains tax.
The chart below illustrates the additional tax savings from a gift of appreciated assets.
|Capital-Gain Tax (15%)||0||$900|
|Actual Tax Savings (24%)||$2,400||$2,400|
|Total Tax Savings||$2,400||$3,300|
Ready to make a gift of appreciated securities now? Please click here to access our Gift of Appreciated Securities Form.