IMPACT GIVING: Appreciated Investments
An asset, such as a stock, bond, or real estate, that has grown significantly in value since it was originally purchased. Often, the sale of appreciated assets will trigger a tax to the owner on the gain. If gifted “in kind” rather than being converted to cash, the Church will receive the asset at current market value, without tax consequence to the owners.
- The donor can often avoid income or capital gain taxes that would be triggered on the sale of the appreciated asset.
- The Church receives the gift at full market value and can then sell it absent of capital gains taxes.
- The gift will be tax deductible to the donor at the current value of the gift instead of what was paid for the gift.
- Allows donor to dispose of an asset that has become burdensome or undesirable to manage, such as an apartment or rental, without triggering taxes.
- Potential estate tax reduction to the donor.
- Stocks that were originally purchased at $10 per share that are currently valued at $50 per share if sold outright instead of being donated, capital gain tax would be triggered on the $40 per share gain.
- An apartment building originally purchased for $50,000, now worth $200,000.
Please contact your financial advisor to determine how comparable figures would apply based on your particular case.