Gifts of Stock

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:

  1. Your gift may be worth more than what you paid for it.
  2. You avoid paying capital gains taxes.
  3. 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 would like to make a gift of stock, please call Chris Dodson at (530) 758-6200 ext. 1042 or send her an email message.

 

 

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