|
|
|
Sue and Jim Wilson bought their first home many years ago. As they were landscaping the yard, painting and fixing up their home, Jim was impressed with the home improvement store. They were making many trips down to the store. The home improvement staff was very friendly and helpful. They did not have a lot of resources, but Sue and Jim decided to buy stock in the store.
Jim: Over the years our stock in the home improvement store has increased in value. It now is worth much more than we paid for it. We paid about $10,000 for the stock and it is now worth almost $50,000.
Sue: We are thinking about of selling that stock. We would like to sell and reduce our tax. We were thinking of selling and writing a check for $5,000 or 10% of the stock value to Loma Linda University.
 Jim: I happened to be talking to a CPA at a community luncheon. He mentioned that we could probably give about twice as much with almost the same cost if we gave stock rather than writing a check.
After talking to our tax advisor, we discovered that if we gave $10,000 of stock, we receive two benefits. By giving the stock instead of writing a check, we get an income tax deduction. Plus, we also save the capital gains tax on the $10,000 worth of stock.
Sue: That is what we decided to do. By giving $10,000 in stock we saved the capital gains tax on that part. Then the deduction on that part offset a large portion of the tax on the $40,000 worth of stock that we actually sold. We are very pleased with the "double benefit" from giving the stock, and our favorite charity has received a very nice gift.
Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your gift and sale benefits under federal rules may be different from this person, you may want to click here to view a color example of your gift benefits.
For more information please select one of the following options:
1. If you would like to see how the "double benefit" of giving part of the stock and selling the balance might work for you, then click here.
2. If you would like to request a printed illustration of a Gift and Sale with your payout rate, then click here.
3. You may print a Gift and Sale tri-fold brochure. Click Here.
|
© Copyright 1999-2010 Crescendo Interactive, Inc.
|
|
