Giving assets that have appreciated in value provides monies for the Lord's work and is another means of charitable giving. If you own stocks, mutual funds or bonds that have appreciated in value since acquired, you may want to consider this approach to giving as it may have distinct tax advantages.
New Life has an account with TD Ameritrade and can accept charitable donations for New Life Church in the form of mutual funds, stocks, and/or bonds.
You own 1000 shares of stock acquired at a cost of $25.00 per share. Currently, the value of the stock has increased to $50.00 per share. If you sell the stock and contribute the $50,000, you will receive a charitable giving deduction for $50,000. You will be required to pay federal capital gains on the profit of $25,000.
You own 1000 shares of stock acquired at a cost of $25.00 per share. Currently, the value of the stock has increased to $50.00 per share. Instead of selling the 1000 shares as indicated in the example above, these shares can be transferred to New Life Church. You receive a charitable giving deduction for $50,000, but do not owe capital gains on the profit of $25,000.
Note: This approach to giving is not usually advisable for securities held in a tax deferred account such as an IRA, 401K, etc.
If you would like further confidential information regarding this approach to giving to the Lord's work, please contact:
Ben Mathew, Treasurer, by clicking here.