With the financial markets having been on a “bullish” run for eight years, many investors are predicting some sort of correction or cooling-off period ahead. But if you sell your appreciated securities, stocks or mutual funds in order to lock in a nice gain, you’ll need to pay capital gains taxes. A possible solution to this dilemma? Do your charitable giving with some appreciated assets instead of writing checks.
The full current value of securities held for more than a year is usually deductible for you, not simply the amount you invested. You give the appreciated security to a charity like Goshen College and then Goshen College sells the security, not you. That way you get the full-value deduction and pay no capital gains tax. Sounds like a win-win! E-mail or call one of us in the development office if you’d like more information on how this gifting can be accomplished.