Take a Charitable Income Tax Deduction
Imagine giving a gift of appreciated securities (stocks, bonds, mutual funds) that benefits our community and saves tax dollars all at the same time! Sound too good to be true? It is true. Federal law permits taxpayers who itemize to deduct the current value of charitable contributions from their adjusted gross income.
Save on Capital Gains Tax
By contributing long-term appreciated securities through the United Way Campaign, you avoid the capital gains tax that would otherwise be due if you sold the securities for your personal benefit.
Potential Stock Gift Benefits
Example: You have securities that have an original cost of $2,000, with a current market value of $10,000.
& Give Cash
|Value of Gift||$10,000||$10,000||$10,000|
|Income Tax Savings||$3,500||$3,500||$3,500|
|Capital Gains Tax||$1,200||N/A||$1,200|
|Net Cost to Donor||$5,300||$6,500||$7,700|
This example illustrates the potential benefit of gifts of long-term appreciated stock and highlights some of the maximum available benefits. We strongly advise you to contact your accountant or tax advisor to determine the exact income tax effect of your gift.