Appreciated Assets

Any securities that you have owned for twelve (12) months or more and have increased in value since your purchase are subject to the capital gains tax if you sell them. However, if you make a gift of these securities to Patronato San Xavier, you receive a charitable deduction for the full, fair market value as of the day of transfer and avoid the tax on the capital gain.

This allows you to make a gift using an asset which might have been considered frozen because of the capital gain that would be experienced if you sold it. Because you get a charitable deduction for the market value, avoid the capital gains tax, and reduce the potential estate tax, you are making a gift that can save taxes three ways.

Example: Sue Smith owns $10,000 worth of ABC Corporation stock, which she purchased for $2,000 two years ago. By donating this stock to Patronato San Xavier, she receives a charitable deduction of $10,000 and avoids tax on the $8,000 of capital gain.

Please give us a call if you would like to discuss this or any other gift.