Gifts of Appreciated Securities
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. Reason: 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-gain tax.
The chart below illustrates the additional tax savings from a gift of appreciated assets.
|
|
|
Cash |
Appreciated Property |
|
A. |
Fair-Market Value |
$10,000 |
$10,000 |
|
B. |
Cost Basis |
10,000 |
4,000 |
|
C. |
Capital Gain |
0 |
6,000 |
|
D. |
Capital-Gain Tax (15%) |
0 |
900 |
|
E. |
Charitable Deduction |
10,000 |
10,000 |
|
F. |
Actual Tax Savings (24%) |
2,400 |
2,400 |
|
G. |
Total Tax Savings (D+F) |
2,400 |
3,300 |
Request an eBrochure
Which Gift Is Right for You?
Contact Us
Sarah A. Chase
Chief Advancement Officer
(860) 927-3539, ext. 207
chases@southkentschool.org
Federal Tax ID Number: 06-0646906
South Kent School
ATTN: Sarah A. Chase
40 Bulls Bridge Road
South Kent, CT 06785
© Pentera, Inc. Planned giving content. All rights reserved.
Disclaimer