Donate Stock
A stock portfolio is often among the most valuable
assets you own, and one that carries substantial
capital gain-appreciation in value. The downside to
assets that have increased in value over the years is
that the federal government is prepared to levy taxes
of up to 28 percent on your capital gain. With careful
planning, you can reduce or even avoid federal capital
gains tax. We can show you how charitable giving may be
one of your best defenses against capital gains
taxes.
As stock prices increase, so do the taxes you owe on
the capital gain, which are generally charged at a rate
of 15 percent (5 percent if you are in the 10 percent
tax bracket). But when you donate publicly traded
stocks held long term (owned for more than one year) to
a qualified charitable organization such as
MEDC, you avoid all
capital gains taxes. Plus, you may take the full fair
market value of the stock gift as a charitable
deduction on your income taxes. The maximum deduction
you may take within a given tax year is 30 percent of
your adjusted gross income. If you are unable to take
the entire deduction in one year, you may carry the
excess deduction forward for five additional
years.
If you would like to learn more about stock donations
and other different types of planned giving, please email us or call at 206.325.2542.
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