Year-end is an excellent time to consider a gift of stock
Giving long-term appreciated stock or mutual funds offers you a two-fold tax saving. First, you avoid paying any capital gains tax on the increase in value of your stock. In addition, you receive a tax deduction for the full fair market value on the date of the gift. For income tax purposes the value of such gifts may be deducted up to an allowable amount determined by the IRS -- please check with your tax advisor.
Example: If you purchased stock many years ago for $1,000 and it is now worth $10,000, an outright gift of that stock to OLT would result in a charitable deduction of $10,000. In addition, you permanently avoid paying capital gains tax on the $9,000 of appreciation.
Your gift of stock or mutual funds can also be used to fund a charitable gift annuity, diversifying your portfolio and/or securing a stream of income.
How it works
- You transfer securities to Orient Land Trust and receive an income tax deduction.
- OLT sells your securities and uses the proceeds for its programs.
- You receive gift credit and an immediate income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
- You pay no capital gains tax on the securities you donate.
- You can direct your gift to a specific fund or purpose.
- You have the satisfaction of making a significant gift now or funding a life-income gift that benefits OLT later.