The Benefits of Planned Giving: An Example

Following is an example of a Gift of Appreciated Securities (stock), which benefits MADRE the same way a cash gift does while offering these benefits to the donor:

  • A federal tax deduction of the full market value (selling price) for each stock contribution you make.
  • No capital gains taxes.
  • No federal alternative minimum tax.

Current Market Value of Stock Gift

$10,000

Cost Basis (Original Cost)

$2,000

Capital Gain

$8,000

Income Tax Deduction for Donor

$10,000

Tax Savings from Deduction

$3,500

Capital Gains Tax Avoided

($8,000 x 15% capital gains tax rate)

$1,200

Total Tax Savings ($3,500 + $1,200)

$4,700

Benefit to MADRE

$10,000

 

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