Many donors to the Marshall County Community Foundation make gifts in the form of appreciated stocks, bonds, and mutual fund shares rather than cash. In addition to the philanthropic benefits to the charity, a gift of appreciated securities offers you the following bonuses:
- You avoid paying capital gains tax on the appreciations, and…
- If you have owned the securities for more than twelve (12) months, you may claim a tax deduction for the market value rather than the purchase price of your securities when you itemize your taxes.
As a example, refer to the below chart:
| Current Market Value | $10,000 |
| Original Cost | $2,000 |
| Capital Gain | $8,000 |
| Income Tax Charitable Deduction | $10,000 |
| Income Tax Savings ($10,000 x 36% Tax Bracket) |
$3,600 |
| Capital Gain Tax Avoidance ($8,000 x 20%) |
$1,600 |
| Total Tax Savings | $5,200 |
| “Cost” of Gift of $10,000 | $4,800 |
| Benefit to Charity | $10,000 |
Consider a gift of Appreciated Securities in your year-end tax planning. Whether the certificate is in your name, or held by a broker/banker, the procedure is simple. Please contact the Marshall County Community Foundation for specific information and details regarding stock donations.
*Note: This is not intended as legal advice, please consult your advisors.
