Traditionally, the holiday season is a time when we make a special effort to be with our loved ones—sharing gifts and showing our appreciation for those who mean the most to us. Many also set aside time during the holidays to make special gifts to our favorite charities, such as Boys and Girls Clubs of East County Foundation.
Do you own stocks, bonds or mutual funds that have increased in value over time? By using these assets to make gifts, you can save on your taxes next spring. Keep in mind that gifts must be made before December 31 to be deductible on your tax return. Gifts of appreciated securities that you have owned for at least one year provide you with a deduction for the full current value of the asset. You are generally allowed to deduct the value in amounts equal to as much as 30% of your adjusted gross income. In addition, you can avoid having to pay capital gains tax on the asset’s increase in value.
If your financial services provider holds your securities in an account, you can instruct that the stock be electronically transferred to BGCEC. We will be happy to provide the necessary information to complete this gift. On the other hand, if you have stock certificates, you can mail the unendorsed certificate and a signed stock power (available from your financial services provider) to BGCEC in separate envelopes.
Consult with your financial advisors about gift options that are best suited for your personal situation. If you would like to make meaningful gifts this holiday season, make your plans today. For more information about making gifts of appreciated securities or other types of year-end gifts, please feel free to contact Forrest Higgins at forrest@bgcec.org or 619-440-1600.