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Charitable Giving, or Two Birds With One Stone

You want to gift your church $20,000. You have a potential taxable gain on a stock that you’ve held for years. Problems! And what do they have to do with one another?

Consider gifting the actual shares of stock to your church. Say you bought the stock in 2008 for $5,000, and it is now worth $20,000. (Nice that it equals the same amount that you want to give – examples are great this way!) You transfer the actual shares to the church. The church then sells the stock and uses the $20,000 for its programs. You still get the tax deduction for a charitable gift of $20,000, but you don’t have to report the gain! You have made the church very happy, and saved $2,250-$3,570 in taxes (depending on which tax bracket you are in) on the capital gain.

(Just be sure that you have held the stock you “gift” for at least one year and one day.)

For questions, contact Burdette Smith & Bish, LLC.

Alison Robinson, CPA

Charles A Bish, CPA

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