Regardless of recent fluctuations, many of the stocks in your portfolio are probably worth more than you originally paid for them. That’s the good news, but it can also be a tax dilemma because if you sell those appreciated stocks, you will owe capital gains tax on the increase in value. However, by giving those appreciated stocks directly to BB&N you can avoid the capital gains tax and receive a charitable deduction for the current market value of your stock. In essence, you receive a tax break for appreciation in value on which you never paid taxes.
Even better, by giving appreciated stock, your gift actually costs you less than the same gift of cash! Here’s a chart illustrating the tax advantages of a gift of appreciated stock:
| Cash Gift | Stock Gift | |
|---|---|---|
| Gift Value | $10,000 | $10,000 |
| Income taxes saved (24%) | $2,400 | $2,400 |
| Capital gains taxes saved (15%) | 0 | $1,200 |
| Total tax savings | $2,400 | $3,600 |
| After tax cost gift | $7,600 | $6,400 |
Of course, your actual tax savings will depend upon your own tax brackets. Check with your tax advisor. Most gifts of stock can be made easily via electronic transfer. We would be happy to work with you and your advisors.
BB&N’s Stock Tool can walk you through the process of stock giving in less than 5 minutes! Give before December 31st for your gifts to count on your 2022 tax return!