Appreciated Stock & Assets

The gift of an asset, often common stock or mutual fund shares, is a valuable way to make a contribution to public broadcasting. You also receive tax benefits based on the value of the asset(s).

Richard and Terri
 

Meet Richard and Terri.  Suppose in this example they have 300 shares of XYZ Corporation that they purchased at $15 a share some years ago. The current value in today's market is $36 a share. If they sold the stock in the market, they would have a taxable, long-term capital gain on the difference between their cost and what they would receive from the sale ($36 minus $15 = $21 capital gain per share. 300 shares X $21.00 = $6,300 in capital gains).

Richard and Terri could sell the stock, pay the tax on the capital gain, and either keep or donate the proceeds. If, instead of selling the stock, they gave the 300 shares to public broadcasting, they would not incur any capital gains and would be able to deduct the current value (300 shares X $36 = $10,800) as a charitable gift. By donating the stock, public broadcasting receives more than it would receive if Richard and Terri first sold the stock and then donated the proceeds after deducting the capital gain taxes. Also, Richard and Terri receive a greater tax deduction by giving the stock directly and avoiding the capital gain tax.

While the gift of appreciated assets often involves stock, other marketable assets, such as land, antiques, and homes, can be utilized as potential gifts with the possibility of valuable tax benefits. However, these other assets are reviewed on a case-by-case basis.

For more information about gifts of appreciated assets, please contact us so we can respond to your specific needs.

Return to Wills and Bequests - Pam Adams - or return to Charitable Lead Trusts - Phil and Alicia.


Please note: individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. The content in this Planned Giving section has been developed for West Virginia Public Broadcasting by Future Focus.