Stock Gifts

The Benefit of Giving Stock Gifts Giving through stock gifts can be beneficial by: Enabling you to avoid paying capital gain tax on the appreciation Deducting full fair market value of the security at the time of the gift Supporting Texas Physicians Resource Council in strengthening families in Texas *As long as you have held the security for longer than 12-months, giving through appreciated securities can work as follows: Mary bought stock 15 years ago for $1,000. The stock has appreciated significantly and is now worth $10,000. Mary decides to donate the stock directly to Free Market Foundation. If Mary itemizes, she will get a $10,000 charitable income tax deduction even though she only paid $1,000 for the stock. Mary avoids paying a capital gain tax on the $9,000 of appreciation ($10,000 minus $1,000). The tax avoided could be $1,800 ($9,000 x 20%). Since she transferred the stock directly to Free Market, versus selling the stock, she also avoids paying a sales commission with her broker.
Gifting Appreciated Assets Chart	Sell Stock and Gift Proceeds	Gift Stock
Value of Asset	$10,000	$10,000
Original Purchase Price	-1,000	-1,000
Amount of Appreciation	$9,000	$9,000
Value of Asset	$10,000	$10,000
Capital Gain Tax (20% Fed )	-1,800	N/A
Proceeds to Ministry (Asset minus Tax)	$8,200	$10,000
Your Tax Savings (45% Federal & State)	$3,690	$4,500
Note: Even though many people have seen this type of growth in today's stock market, the above example is for illustration purposes only. However, at this time, this example does not apply to tax-exempt retirement plans (e.g. IRA's, 401(k), etc.). How to Give Stock Gifts *You can donate stock by contacting Mark Swafford at 972-423-8889 x101. Please note: You can reach our office Monday through Friday between the hours of 9:00 a.m.- 5:30 p.m. by calling 972-423-8889.