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Historically Lewis

Home of the Lewis County Historical Society

A business owner who contributes closely held stock to the Lewis County Historical Society will be allowed a charitable deduction for the fair-market value of the stock. An additional benefit is that the donor will escape the potential capital-gain tax on any appreciation in the value of the stock.

Subsequent to the gift, the corporation could purchase the stock from the Lewis County Historical Society for cash. This not only enables the donor to retain complete control over the company but also makes cash available to the Lewis County Historical Society for its current needs. As long as the Lewis County Historical Society is not obligated to sell the stock to the corporation, the transaction should produce no adverse tax results.

How It Works

  1. You make a gift of your closely held stock to the Historical Society and get a qualified appraisal to determine its value
  2. You receive a charitable income-tax deduction for the full fair-market value of the stock
  3. The Historical Society may keep the stock or offer to sell it back to your company

Benefits

  • You receive an income-tax deduction for the fair-market value of stock¬†
  • You pay no capital-gain tax on any appreciation
  • Your company may repurchase the stock, thereby keeping your ownership interest intact
  • The Historical Society¬†receives a significant gift