Gifts of Appreciated Securities
By making a gift of securities or real estate you benefit in two ways: first, by receiving a charitable income tax deduction, and second, by avoiding capital gains taxes that would otherwise be due on the appreciated property.
A few simple rules govern these types of gifts. Brief explanations are given below. For more information or to make a gift, please contact Robert J. McCarthy, Director of Advancement, at 781 475-5333 or firstname.lastname@example.org. You are always encouraged to speak with a tax or estate planning advisor. There are Malden Catholic graduates who specialize in these areas if you need assistance.
Appreciated securities held for more than twelve months benefit a donor in two ways. The donor is able to claim a charitable income tax deduction for the full market value of the securities. The deduction is limited to 30 percent of the donor’s adjusted gross income, but, as with outright gifts of cash, the remaining value of the deduction may be carried over and deducted against adjusted gross income for the next five years. Capital gains tax is also avoided by donating the stock to Malden Catholic versus selling the stock yourself and then donating the proceeds.
Please contact Robert J. McCarthy PRIOR to the transfer.
Gifts of real estate may be designed in numerous ways to benefit the donor. An outright gift of real estate held by the donor for more than 12 months provides the donor with a charitable income tax deduction for the full market value of the property, based on an independent appraisal. The deduction is limited to 30 percent of the donor’s adjusted gross income, but the remaining value of the deduction may be carried over and used for deductions for the next five years.
Gifts of a personal residence or farm can also be made with a retained life estate. The retained life estate allows the donor or a designee of the donor to live in their home for the rest of their life. After that time, the real estate is owned outright by Malden Catholic, without the complications or taxes of probate proceedings. This gift also allows the donor to receive current income tax deductions for the discounted value of the property.