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Gifts of Appreciated Securities
A $5,000 cash gift and a gift of $5,000 in Appreciated Securities both generate the same charitable
deduction. But if you use publicly–traded stocks, bonds or mutual fund shares to make your gift, you will receive an additional tax benefit: the IRS allows you to make your transfer without recognizing capital gains on the appreciation. You can thus leverage a larger donation than you could make with cash – and receive a larger tax deduction – by "buying low and giving high."
The value of your stock gift is valued as of the day the securities reach our account if your broker
transfers them electronically, or the postmark date if you mail them. Your gift value is the average of the high and the low prices for the securities on that date (for mutual fund shares, it is the net asset value at the close of business on that date).
The IRS allows you to claim charitable deductions for gifts of appreciated securities up to 30 percent
of your adjusted gross income (AGI – your total taxable income for the year). Alternately, if you use cash instead of stock to make your gifts, you can claim deductions up to only 50 percent of AGI. Although excess deductions may be claimed over the subsequent five year period, you may wish to give cash instead of property if you are looking for substantial immediate tax deductions.
Important Tip: Don't sell the stock first. Even though you give us the proceeds as a gift, the IRS will impose capital gains tax on any stock appreciation from your sale, thereby erasing the benefits of this arrangement.
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To learn more about gifts of appreciated securities, Email us, complete the Information Request form, or call us at (215) 893-9000 so that we can assist you. |
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