Introduction to Donating Appreciated Securities
In recent years many of us have enjoyed considerable gains in our investments. If you own such appreciated securities you have a unique opportunity to realize double tax savings by making a charitable outright gift to the U.S.ENGLISH Foundation.
You can earn your charitable tax deduction in the amount of the full fair market value of the securities provided you have owned these securities for at least a year. Simultaneously, you can avoid paying the capital gain tax due at the time of selling your securities. This way you can save up to 30 percent of your adjusted gross income. You can carry forward any unused deduction for up to five years and use it on upcoming tax returns.
After your outright gift of appreciated securities, you may also consider purchasing the same security at the current market value. That way, you would have a new, higher basis in the stock and thus pay less capital gains tax when you eventually decide to sell the new shares later.
You can also use appreciated securities to fund other income generating charitable vehicles, such as annuities or remainder trusts.
More information:
Disclaimer: U.S.ENGLISH Foundation does not render legal, tax or other professional advisory services. Advice from an attorney and other professional advisors should be sought when considering charitable giving.
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