Kathleen and Bill make a donation to the Allentown Symphony every year.
Kathleen: Years ago, I inherited stock from my grandmother. Earlier this year, we decided to sell some of the stock. After we sold the stock, our CPA told us we would need to pay a capital gains tax of nearly $120,000 from the sale.
Bill: That came as a shock to us. Our CPA shared ways we could offset the capital gains tax bill. We told him we were planning on making a gift to the Allentown Symphony this year. Our CPA advised us that if we gave some of the remaining stock before the end of the year to the symphony, instead of a cash gift, we would receive a charitable deduction that would help offset the capital gains tax on the stock we sold.
Kathleen: We contacted the Allentown Symphony to discuss the best way to make a gift of stock. They provided us with instructions that allowed our broker to transfer stock directly from our account to the Allentown Symphony.
Bill: By transferring $80,000 in stock outright to the symphony, we received two benefits. First, we avoided a large capital gains tax on that stock, and second, we received a charitable deduction. The deduction even offset all of the capital gains from the stock sale. We are very pleased with the double benefits of our gift. And, we're delighted that we've been able to make a nice charitable contribution.
Making year-end charitable gifts, especially with highly appreciated property such as real estate and stocks, can be an excellent strategy to reduce your tax bill.
Please contact us if you have assets that you would like to donate to us. We are happy to work with you to structure a gift that meets your needs.