Buy Low, Give High: Benefits of Giving Stocks
Two Key Tax Wins
Are you fed up with certain stocks because of their high risk, low yield or capital gains taxes waiting for you? If you want to unload these assets and support Union College, a donation of stocks could be the solution.
When you give Union College appreciated securities that you’ve owned for more than one year, you will receive two tax benefits:
- You can take an income tax charitable deduction (when you itemize) for the fair market value of the shares, no matter how much (or little) you originally paid for them.
- You will be exempt from paying capital gains taxes on any increase in value—taxes you would have to pay if you sold the stock.
What If My Stock’s Value Has Declined?
It’s usually better to sell your stock and give the cash proceeds to Union College. You can take an income tax deduction for your cash gift when you itemize, and you can take the loss on the sale of your stock as a deduction against future gains.
Bonus Idea: Get More From a Good Performer
Do you own a stock whose performance has been outstanding, or are you emotionally invested in the company? If this stock has produced large capital gains, there’s a tax-saving charitable solution:
- Contribute the shares to Union College.
- Plan to buy the same number of replacement shares on the market. This way, you’ll wipe out your past capital gains tax liability and still maintain your position in a favorite investment.
- To provide funds for the purchase, sell an investment that has lost money and take advantage of a potential capital loss deduction.
We Can Help With Wall Street!
Contact Ken Farrow at firstname.lastname@example.org or 402-486-2600, Ext. 2200 for illustrations showing how you can secure the best tax advantage from a gift of stock.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.