Free Reports
About Us
Schedule a Consultation
Attend a Workshop

Font Size:



Giving The Illiquid

Posted on: March 31st, 2014



By: Dahlia Robinson - Ocken, Esq.

Lets discuss an alternative to a cash charitable donation. While it’s certainly worthwhile when you drop your loose change into the Salvation Army kettles, there can be more tax beneficial ways to gift larger amounts.


Have you considered your annual, charitable gift strategy? While it is sometimes tricky to figure out to whom you are going to give – there are so many worthy causes and only so much to go around – also remember to consider what you are going to give to charity. In addition to your time and/or your money, there are other special (yet common) assets to give for a great advantage to everyone involved.

Most seasoned donors are already well acquainted with the fact that there are many great tax advantages to charitable giving. In that spirit, keep in mind that those appreciated securities you have may be the perfect gift to benefit your charities rather than the IRS.

This was the subject of a recent Forbes article titled “Gifting Appreciated Securities: A Win-Win-Win Scenario.

Read the original article for details regarding the accounting, securities-talk and the would-be story of our hero, Mr. Benevolent. In essence, however, “appreciated” assets are those that are worth more now than they were when you bought them. In turn, the increase in value represents a net gain – a capital gain – and that can translate into a capital gains tax upon transfer.

In the charitable giving context, you can perform some tax magic. If you sell an appreciated asset, you must first pay the capital gains tax. Thereafter, you may give the after-tax proceeds to charity. You may only claim the value of this after-tax gift for charitable deduction purposes.
On the other hand, if you give the same appreciated asset to charity, then 100% of the value goes to work for the charity. Why? The charity pays no income taxes! Even better, the tax code allows you to claim the full appreciated value when calculating your charitable contribution.
Smart, savvy giving is worth planning – for you and your charities.

Reference: Forbes (November 6, 2013) “Gifting Appreciated Securities: A Win-Win-Win Scenario
Share |

Comments (0)



Post a comment
You have to login or register in order to post comments
Forgot Password? Enter Login Email


Login

Your Email:
Password:
Remember me

Philadelphia area Estate Planning and Elder Law attorneys Dahlia Robinson-Ocken and Daniel Baltuch offer creative planning in the areas of estate planning, elder law planning, wills, revocable living trusts, long-term care asset protection planning, powers of attorney, medical powers of attorney, guardianships, irrevocable trusts, living wills, estate, probate and trust administration, probate avoidance, asset protection and planning for physicians, tax planning, lawsuit protection planning (including professional malpractice lawsuit protection planning), planning for minor children, faith-based planning, Medicaid planning, Veterans benefits planning and resources, charitable planning and gifting, special needs and disability planning, estate tax planning, business law and succession planning, and Medicaid applications and long-term care crisis planning. Dahlia and Daniel serve the entire southeastern Pennsylvania and southern and central New Jersey region, including Philadelphia, Montgomery County, Delaware County, Bucks County, Chester County, King of Prussia, Springfield, and Conshohocken in Pennsylvania, as well as Camden County, Gloucester County, Burlington County, and Mercer County in New Jersey.

Click Here To Call Our Office
Sign Up For Our E-Newsletter
ClientDocx Login
Email This Page To A Friend
Welcome | Practice Areas | Newsletters | FAQs | Becoming a Client | For Professional Advisors | About Us | Contact Us | Disclaimer | Google
Robinson & Baltuch | 267.225.DLAW (3529) | Info@ElderEstateLaw.com | 822 Montgomery Avenue, Suite 204, Narberth, PA 19072