By giving Central Texas Table of Grace appreciated securities that you’ve held for more than a year, you potentially receive a few tax benefits:
You avoid capital gains tax on the appreciation that would be due upon sale.
You can receive a charitable income tax deduction for the current fair market value of the property – up to 30 percent of adjusted gross income.
You can carry forward any unclaimed portion of the deduction for up to five additional years, subject to the annual limit.
Example
Sarah would like to make a gift of $10,000. She is considering giving cash or appreciated stock that he purchased for $2,000. This chart shows her potential tax savings for giving stock:
| Cash | Appreciated stock | |
| Fair market value | $10,000 | $10,000 |
| Capital gains tax saved (15%) | $0 | $1,200 |
| *Income taxes saved (24%) ** | $2,400 | $2,400 |
| After-tax cost of gift | $7,600 | $6,400 |
*If Sarah itemizes deductions
Transferring securities held at a brokerage firm
To transfer shares held with a brokerage firm, provide the following information to your broker:
Account Registration: Central Texas Table of Grace
DTC # 0221 Account #AJXXXX9
(For security reasons please call to confirm the complete account number, our financial services contact Doug Carroll (UBS Financial Services)
At phone # (512) 479-5228)
P.O. Box 52, Round Rock, Texas 78680
Other transfers
If you would like to transfer mutual funds, bonds, stock certificates, or shares held with transfer agents, please contact us.
Gifts at year-end
If you wish to make a gift of securities for the current tax year, start early to ensure that your gift will be completed before December 31. While the non-profit receives some electronic transfers within days of when the gift was initiated, longer delays are possible, especially at year-end. Gifts of mutual funds take longer than stock gifts, often several weeks. Contact your broker for their deadline to complete transfers by year-end.
More Information
For more information on giving a gift of stock or mutual funds you can contact Marla via email [email protected] or at 512-244-4335.
DISCLAIMER
Information on this website is not intended as legal or tax advice. For information on how any gift may affect your tax situation, please consult with your own professional advisor.
