Unlocking Hidden Value in Your Capital Gains
Gifts of stock can sometimes be more advantageous for you than gifts of cash.
When you give appreciated securities to Freedom from Hunger, you can benefit
in three ways:
- Your gift may be worth more than what you paid for it.
- You avoid paying capital gains taxes.
- If the stock has gained in value since it was acquired and it has been
held long term, you may deduct the current fair market value of the stock
from the current year's taxable income.
Here's how it works:
|
| Gift of Stock
| Gift in Cash
|
| Value |
$5,000 |
$5,000 |
| Original cost of gift |
$3,000 |
$5,000 |
| After-tax value of capital gain
(@20% tax rate) |
$1,600 |
N/A |
| Total value to donor of gift given |
$4,600 |
$5,000 |
| Savings from tax deduction @
33% maximum tax rate |
(1,650) |
(1,650) |
| Net cost of gift |
$2,950 |
$3,350 |
If you have any questions about gifts of stock, or other ways you can help,
please call Chris Dodson
at (530) 758-6200 ext. 1042 or send her an email
message.
If you would like to electronically deliver stock directly to Freedom from
Hunger, our DTC# is Ø141 and our Account# is 3452-6985 ('Ø' in
the DTC# indicates the number zero, not a letter). In order to acknowledge this
gift appropriately, please notify us of your name, the stock name, the number
of shares and the date of transfer.
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