Gifts of Stock - A winning situation
Through the years, many have enjoyed great financial success from investments in stocks, bonds, and mutual funds. While some analysts predict values will continue to rise, not everyone agrees. A number of experts are concerned that stocks may decrease in value. If you are wondering what you should do, using appreciated assets to fund a charitable gift is an option worth considering.
Here's how it works:
If you have owned publicly traded or closely-held stocks for at least one year and one day, they are considered appreciated assets and can be transferred to SBU. In return, you can receive an immediate income tax charitable deduction for the current fair market value of the stock (if you itemize), no matter what you originally paid for it! What's more, you can reduce estate and capital gains taxes.
All appreciated asset gifts are deductible up to 30% of adjusted growth income in the year of the gift. And, any unused portion of the deduction may be carried forward over as many as five subsequent tax years.