Jim: That came as kind of a shock. Our CPA started to talk about ways we could offset the capital gains tax bill. We told him we were planning on making charitable gifts. Our CPA advised us that if we gave some of the remaining stock before the end of the year, we could receive a charitable deduction that would help offset the capital gains tax on the stock we sold.
Sharon: Our CPA connected us with the Community Foundation to discuss the best way to make a gift of stock. They explained the process and provided us with instructions that allowed our broker to directly transfer stock from our account to our charitable giving fund.
Jim: That is what we decided to do. By transferring $80,000 in stock outright to our charitable giving fund, we received two benefits. First, we avoided a large capital gains tax on that stock, and second, we received a charitable deduction. The deduction even offset all of the capital gains from the stock sale. We are very pleased with the double benefits of our gift. And, we're delighted that we've been able to make grants to the causes we care about well into the future.
Is a current gift right for you?
Making year-end charitable gifts, especially with highly appreciated property such as real estate and stocks, can be an excellent strategy to reduce your tax bill.
Please contact us if you think you have assets that could be used to establish a charitable giving fund. We would be happy to work with you to structure a gift that meets your needs.
*Please note: The names and image above are representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to click here to view a color example of your benefits.