Sometimes we have an end goal in mind, but we aren’t exactly sure how to get there. Making the most of our charitable giving is no different. There are many ways to give other than with cash, and some offer greater tax savings and other benefits. One very popular method is giving appreciated securities.
Test what you know… True or False?
True or False? When you make a gift of appreciated securities, you must pay tax on the increase in value?
FALSE. With securities you have owned for longer than one year, you may deduct the full value of the asset instead of what you originally paid for it, bypassing any capital gains tax you would owe if you instead sold the asset.
True or False? You must take the income tax deduction in the year you complete the gift if you itemize.
FALSE. You can reduce taxes in as many as five future years with any unused deduction from your charitable gift.
True or False? You have shares that have dropped in value that you want to use for a gift to the Boys and Girls Clubs of East County Foundation (BGCEC Foundation). You’ve heard you can only claim one deduction when using those assets, so you’re not sure it’s worth it.
FALSE. By selling the securities and donating the proceeds, you can claim both a capital loss deduction and an income tax charitable deduction, if you itemize.
Learn more
Please contact our Executive Director, Forrest Higgins at forrest@bgcec.org or 619-440-1600×301 if you would like more information about making a gift in this way.