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Gifts
of Marketable Securities
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Many individuals
are holding tightly appreciated securities such as stocks,
mutual funds, and find that because of the capital gains tax,
it is counterproductive to sell these securities. But
if you contribute those securities to AOTF, you can avoid
the capital gains tax on the securities, and claim a charitable
tax deduction. That's right, you enjoy a double tax
benefit! Here is how it works:
Let's say you purchase
100 shares of company XYZ for $10 a share two years ago.
Your base cost is $1,000. Today, shares of XYZ are selling
for $50 a share, therefore, the market value of your shares
of stock is $5,000. If you contributed those shares
of stock to AOTF, you would be entitled to a charitable tax
deduction of $5,000. Assuming you are in the 28% federal
tax bracket, you would receive a tax savings of $1,400. You
will also avoid costly capital gain taxes since gifts of marketable
securities to charity are not subject to a capital gains tax.
With a federally long-term capital gains tax of 20%, you could
save an additional $800 on your tax bill.
The end result
is that you made a $5,000 gift to AOTF and saved $2,200 on
your tax bill!!! And that does not even include the
potential savings on your state taxes.
It's that
easy. If you are interested in exploring the possibility
of contributing marketable securities, contact your
tax advisor or call , AOTF's Interim
Co-Executive Director, at 301-652-6611 ext. 2558.
The examples cited
in this home page are for illustrative and informational purposes
only. Your personal situation may differ. Please consult your
tax or legal advisor about your particular situation.
The
American Occupational Therapy Foundation is a 501(c)(3), charitable,
non-profit organization. Gifts to AOTF are tax-deductible
to the extent allowed by law.
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