Gifts of Stock

If you own stock, it is almost always more tax-wise to contribute stock than cash. This is because a gift of appreciated stock generally offers a two-fold tax saving. First, you avoid paying any capital gains tax on the increase in value of the stock. Second, you receive an income tax charitable deduction for the full fair market value of the stock at the time of the gift.

Example: If you purchased some stock many years ago for only $1,000 and it is now worth $10,000, an outright gift of the stock to us would result in a charitable contribution deduction of $10,000. In addition, there is no capital gains tax on the $9,000 of appreciation.

Make sure you have owned the stock for a “long-term” period of time (this generally means that you have held the stock for more than one year) to qualify for these significant tax advantages. Your gift of stock should be postmarked by December 31. In the alternative, a stockbroker or trust officer can arrange for a year-end gift of stock from your account. Gifts of appreciated stock are fully deductible – up to a maximum of 30% of your adjusted gross income. For example, if your adjusted gross income for 2014 is $100,000, up to $30,000 of long-term appreciated stock and other property gifts may generally be deducted in 2014. Any excess can generally be carried forward and deducted over as many as five subsequent years.