Consider Charitable Gifts of Appreciated Stock to HospiceCare

    You may want to consider giving appreciated stock or other property. Many people consistently give appreciated stocks or property, rather than cash donations, avoiding paying capital gains tax when they sell.

    For example, Mr. And Mrs. Fenton have an account with a brokerage company. They know that one of their stocks has grown from $15.00 a share to $75.00 a share over the last few years. They have considered selling the stock and making some gifts to family and charity. But, their broker let them know that they would have to pay tax on the appreciation, which is $60.00, and suggested they give shares of the stock to charity directly to avoid the capital gains tax.

    The Fentons' ended up giving 100 shares of the stock to their favorite charity. They will receive a charitable income tax deduction of $7,500 on the stock for which they paid $1,500. Since they are in a 31% tax bracket and file an itemized tax return, they will possibly save $2,325 in taxes.

    There is great value in giving appreciated stocks, instead of cash to charity. Some professional financial advisors would argue that it is the best way to give gifts of $1000 or more.

    Donations of appreciated securities provide an income tax deduction for the fair market value the day it is transferred to HospiceCare of Southeast Florida. Remember, the bypass of capital gains tax will not occur if the stock or other property is sold by you and the proceeds given to charity.

    If you would like to transfer a gift of stocks to HospiceCare of Southeast Florida, contact Paul Keefe, our Planned Giving Officer, at 954-467-7423 or e-mail him at pkeefe@hospicecareflorida.org.