Take a Charitable Income Tax Deduction
You can give a gift of appreciated securities (stocks, bonds, mutual funds) that benefits our community and saves tax dollars all at the same time! Federal law permits taxpayers who itemize to deduct the current value of charitable contributions from their adjusted gross income.
It’s Super Easy to Transfer Stock
Please notify us of your intent to transfer stock by calling our Finance and HR Director at 651-272-3551.
If you hold securities in “street name”—that is, you do not have physical possession of the stock certificate—please notify your broker to initiate a “broker to broker” transfer. Please tell your broker to donate the stock to Family Tree, Inc. Our brokerage firm is TD Ameritrade. The account number is 868-629065. To avoid capital gains tax, make sure that the securities are transferred to our account before they are sold.
Save on Capital Gains Tax
By contributing long-term appreciated securities through Family Tree Clinic, you avoid the capital gains tax that would otherwise be due if you sold the securities for your personal benefit.
Potential Stock Gift Benefits
Example: You have securities that have an original cost of $2,000, with a current market value of $10,000.
& Give Cash
|Value of Gift||$10,000||$10,000||$10,000|
|Income Tax Savings||$3,500||$3,500||$3,500|
|Capital Gains Tax||$1,200||N/A||$1,200|
|Net Cost to Donor||$5,300||$6,500||$7,700|
This example illustrates the potential benefit of gifts of long-term appreciated stock and highlights some of the maximum available benefits. Please contact your accountant or tax advisor to determine the exact income tax effect of your gift.
Tax Deductions and the Date of Your Gift
The date of the gift is the day the stock passes from your control. For gifts of securities held longer than one year, the value for income tax purposes is the mean between the high and low quoted selling price on that day. Your gift will be acknowledged by Family Tree Clinic with the valuation of your gift for tax purposes.