Campus Photos by
Joel Zwick
|
|
Sue and Jim Wilson bought their first home many years ago. As they were putting in the yard, painting and fixing up the home, Jim was impressed with the home improvement store. It was part of a large chain, but the staff was very friendly and helpful. Sue and Jim did not have a lot of resources, but as one of their first investments, they decided to buy stock in the store.
Jim: Over the years, our stock in that home improvement store has increased in value and is worth much more than we paid for it. We bought it for $10,000 and it is now worth almost $50,000.
Sue: The stock has gone up greatly in value and now we are thinking of selling it. We plan to sell and then reduce our capital gains tax by writing a check for $5,000, or 10% of the stock value, to SDSU. It is our alma mater, and they are having a capital campaign.
 Jim:I happened to be talking with a friend at a community meeting who is a CPA. He mentioned that we might be able to give about twice as much to SDSU for almost the same cost to us if we give the stock itself rather than writing a check.
After talking to my tax advisor, we discovered that if we give $10,000 in stock, we receive two benefits. By giving the stock instead of writing a check, we get our income tax deduction. Plus, we completely avoid the capital gains tax on the $10,000 worth of stock.
Sue: That is what we decided to do. By giving the $10,000 of stock, we saved the capital gains tax on that amount. Then the income tax deduction from the gift offset a large portion of the tax on the $40,000 worth of stock that we actually sold and kept for ourselves. We are very pleased with the "double benefit" from giving the stock, and our alma mater 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.
|
|
