Page Content
Outright Gift of Securities
Possible Tax Deductions and More
Any securities you irrevocably donate to a charitable organization like Boys Town may result in a current income tax deduction. But there may be other tax benefits from your gift. If you contribute securities you have owned for more than one year, and they are worth more now than when you purchased them, you have the added potential benefit of avoiding tax on the gain. A gift of securities allows you more flexibility when planning your gift, and there are even more potential benefits if you plan your gift creatively.
Potential Benefits
- Receive a current income tax deduction for gifts of securities
- Get relief from capital gains taxes with gifts of securities
- Help fulfill our mission with your contributions
Did You Know?
Even if your stocks have taken a hit in recent years, they are still considered appreciated if they're worth more now than when you purchased them.
Example:
The Situation: Dave has stocks he no longer wants that are currently valued at $20,000. He purchased the stocks for $4,000 several years ago, which means a $16,000 capital gain if he sells the securities. He is in a 35 percent marginal income tax bracket.
Tax-Saving Strategy: Dave should consider donating the stocks to his favorite charitable organization.
Potential Benefits: Dave receives an income tax charitable deduction for the full fair market value of $20,000 - saving him $7,000 ($20,000 X 35 percent) in income taxes.
Dave bypasses the $16,000 capital gain, saving $2,400 in his 15 percent capital gains tax bracket ($16,000 X 15 percent).
The total tax savings from capital gains and income taxes is $9,400
