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Giving Appreciated Stocks

Any stock that has been held over a year and has appreciated in value can be donated to Care Net. There are some great advantages to giving stock instead of cash.

Make a Stock Gift at Freewill.com

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For more information, contact Bob Milton at Bmilton@care-net.org or 205-914-4812

BENEFITS TO GIVING STOCK INSTEAD OF CASH

AVOID CAPITAL GAINS TAX: When you make a stock gift to Care Net, you may not have to pay capital gains on the amount of gain you incurred.  For example, if you bought 100 shares of ABC INC stock a few years ago at $10 a share you spent $1000 Over time, ABC INC grew and now one share is work $50. So, the fair market value of your 100 shares is now worth $5,000 (50x $100). If you sold those shares and then donated to Care net you would pay a capital gains tax of $800 at the largest Capital Gains rate ($5,000-$1,000=$4,000) x 0.2=$800. You would then only be giving Care Net $4,200. But if you just give the stock, you could give the entire $5,000. Plus, you have the added benefit of an income tax deduction for the entire $5,000 instead of only $4,200 if you gave the cash.

AVOID FUTURE CAPITAL GAINS: If you give the stock instead of cash, you could then use your cash to by the stock again at the higher value. If the stock continues to increase in value, and you want to sell in the future, you will pay less in capital gains tax than you would have if you still had the original shares.

 

Who should donate stock?

Giving stock to Care Net is not just for the “super rich.” Anyone with stock that has appreciated in value that they’ve held longer than one year should consider stock donations.

But, if you have securities that have declined in value over the years, and want to make a gift to Care net, you may find it more advantageous than you think. You might, however, be better off selling the stocks and then give to Care Net. This might be better than just giving the stock outright. In this way, you might be able to claim a deduction for your loss from selling the stock and receive a charitable tax deduction as well.


What should I do?

Your specific situation may be different from someone else’s specific situation. Please talk to you tax and/or legal professional to determine which path is best for you and your family.


Make a Stock Gift at Freewill.com

 

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