Most people think of cash when they consider a charitable contribution, but a gift of securities may be a wiser choice. By contributing appreciated securities to Chabad of Waukesha-Brookfield, you make a powerful community contribution while gaining valuable tax advantages. If you have owned appreciated securities for at least a year and a day, your contribution can offer the following benefits:
Eliminate Capital Gains Tax
By donating your appreciated securities, you avoid the capital gains tax you would owe if you sold the securities yourself. The deduction of gifts of appreciated capital-gains property is limited to 30% of your adjusted gross income, subject to the five-year-carry forward provision.
Enjoy a Last Minute Tax Break
At the end of the calendar year, when tax breaks and timing are critical, securities can be deducted on the date you transfer them.
Claim the Market Value
By claiming the market value (versus the cost basis) of the securities, you can enjoy a charitable contribution tax deduction equal to the average of the highest and lowest quoted sales price on the day you make the gift.
Stock Advantages Over Cash
Your securities donation can deliver significant tax advantages over a cash donation, allowing you to fund the community issues you care about at a lower after-tax cost to you. The chart to the right depicts the difference between the after-tax cost of a gift of cash and a gift of stock. Assume that the stock was originally purchased at $250 (basis), the income tax rate is 27%, and the capital gains tax is 20%.
Contact [email protected] for more information regarding donating stocks.