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. The 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 |
How It Works
- You can send unendorsed stock certificates by registered mail or instruct your broker to make the transfer from your account to the account of the Lewis County Historical Society
- You receive and income tax deduction
- The Historical Society may keep or sell the securities
Benefits
- You may receive a federal income-tax deduction for the full fair-market value of the securities
- You avoid long-term capital-gain tax on any appreciation in the value of the stock
Your gift supports the Historical Society