Giving Appreciated Stock
Gifting stock is an easy process. Some benefits of your gift are:
If he gives the stock to his church, he can claim a charitable deduction of the full market value of the gift ($10,000). The church can then sell the stock and apply the full proceeds ($10,000) towards their campaign. And, since a gift to the charity is not a sale, he will not owe any capital gains tax on the transaction.
If Charlie were to sell the stock himself, he will incur $8,000 in capital gain ($10,000 market value minus $2,000 cost basis). After he pays taxes of $1,200 (the 15 percent capital gains tax rate on the $8,000 gain), his gift to charity and charitable deduction will be only $8,800.
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For assistance in gifting appreciated stock (click here)
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