A Tax-Smart Way to Make an Impact
Making a gift of appreciated stock to TMA Foundation is an investment with real benefits. Aside from the potential tax advantages of making a generous future gift, you also gain the satisfaction of knowing that you are leaving a lasting impact on a cause close to your heart.
As a donor, you may not realize that you can donate appreciated stock to TMAF to support our mission in the future.
By design, investment portfolios fluctuate throughout the years. If you opt to sell investments that are worth more than what you originally paid for them, you must pay capital gains tax. Consider donating stock to the foundation instead. The chart, below, shows how the way you make your donation can affect your total tax savings when you itemize.
Save More With a Gift of Stock
|
|
Give $10,000 Cash to TMAF
|
Sell $10,000 in Appreciated Stock and Give Cash to TMAF
|
Give $10,000 in Appreciated Stock Directly
to TMAF
|
| Fair market value of gift
|
$10,000
|
$10,000
|
$10,000
|
| Cost basis
|
N/A
|
$2,000
|
$2,000
|
| Long-term capital gain
|
N/A
|
$8,000
|
$8,000
|
| Long-term capital gains tax
($8,000 x 15%)
|
N/A
|
($1,200) due to IRS
|
$1,200 eliminated
|
| Income tax savings ($10,000 x 24%)
|
$2,400
|
$2,400
|
$2,400
|
| Total tax savings
|
$2,400
|
$1,200
|
$3,600
|
| Net cost of gift
|
$7,600
|
$8,800
|
$6,400
|
The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
Last Updated On
April 10, 2019
Originally Published On
April 10, 2019