By: Laurie Valentine
With financial market ups and downs over the past few years there probably have been times when your stocks, bonds and/or mutual fund shares have been worth considerably more than what you paid for them and times when that has not been the case. And, that same pattern will continue in the future.
For those considering an above-and-beyond gift to their church, or one of our KBC or SBC ministries, using appreciated securities to fund that gift may be a better choice than giving cash. That’s because your gift of appreciated stocks, bonds or mutual fund shares can provide both income tax savings, if you itemized deductions on your income tax return, and capital gains tax savings.
The income tax deduction value of your gift is the current price you would get if you sold the security, not what you paid for it. And, by giving the appreciated security you avoid the capital gain (difference between current market value and what you paid for the security) you would have to report if you had sold it.
Appreciated stocks, bonds or mutual fund shares can be used for outright gifts or to fund a gift that pays you an income for life with remainder to the charitable cause or causes you designate at your death.
Tap in to the potential for double tax savings by prayerfully considering a gift of appreciated securities.
Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); KYBaptistFoundation.org
The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.