Donating stock this year is an alternate strategy that has been shown to help people increase their charitable giving and often save even more money on their income taxes.
Instead of giving cash, many people with investments in stocks, bonds or other securities they've held for at least one year donate those that have appreciated in value. The benefit of donating non-cash securities comes in the form of significant income-tax savings. This is because there is no capital gains tax when appreciated securities are donated to a non-profit.
How it works
If you own a stock for more than one year that has appreciated (gone up in value), you may then donate the stock to a nonprofit, and will receive a deduction equal to the fair market value of the stock at the time of the transfer. You will never pay capital gains tax on the appreciated value of the stock. The nonprofit will never owe that capital gains tax either so it’s a win-win situation!
If you’re interested in donating stock to InCommunity today please email Kimberley Ellery at email@example.com