If you could save twice as much on taxes, would that interest you? Over the past few years, we have seen significant volatility in the financial markets. You have probably seen times when your stocks, bonds and/or mutual fund shares have been worth more than what you paid for them and other times when the opposite has been true. Most likely, that same pattern will continue.
If you have thought of giving an offering above your tithe to your church or the New Work Foundation, consider the tax advantages of giving appreciated securities rather than cash to fund that gift. The reason is simple. When you give appreciated stocks, bonds or mutual fund shares it can provide both capital gains tax savings and income tax savings, if you itemized deductions on your income tax return.
The income tax deduction value of your gift is the current price you would get if you sold the security, not what you paid for it. In addition, by giving the appreciated security you avoid the capital gain you would have to report if you had sold it. In other words, it is the difference between the current market value and what you paid for the security.
Appreciated stocks, bonds or mutual fund shares can be used for outright gifts or to fund a gift that pays you an income for life with the remainder going to your church, the New Work Foundation or other charitable cause that you designate at your death.
Lock into the potential of double tax savings when you prayerfully consider a gift of appreciated securities.