Appreciated Assets includes items such as publicly traded stock, closely held stock, bonds, mutual fund shares and real estate.
WHY GIVE APPRECIATED ASSETS?
When Christians give to their church and other ministries they care about, most simply give from their income or cash reserves. However, this is not always the best plan of stewardship for the giver. Giving appreciated assets such as stocks, bonds, mutual funds and real estate provide double tax benefits not available when giving cash. You not only receive a charitable deduction for the fair market value of your gift, but you also avoid capital gains tax. As stewards in God’s kingdom, we should take advantage of tax incentives available to us in order to harness as much as possible for the Lord’s work and our families. So, if you’re thinking of selling an appreciated asset and you want to give back to the Lord, we can help. We can assist you in developing the best plan of stewardship as you give to your church and other ministries you care about. This service is a gift to you for your faithful support.
THE POSSIBILITIES ARE NUMEROUS
You can give appreciated assets such as:
Publicly traded stock
Private C-Corp stock
FLP or LLC shares
Gold and Silver
APPRECIATED GIFT EXAMPLES
If you’re not able to give the entire appreciated asset, there are many other possibilities available to you. Below are a couple of examples.
PART GIFT - PART SALE
Let’s say, for instance, you have 500 acres of appreciated farmland you want to sell. Prior to entering into a sale agreement, you could gift 250 acres to ministry. Then you and the ministry would sell the property together. You would receive a tax deduction for the fair market value of your gift and avoid 50% of your capital gains tax upon sale. These tax savings could then be used to help offset, or possibly eliminate, the capital gains tax on the portion of the property you kept for yourself.
GIFT AND INCOME STREAM
Using the scenario above, you could also gift all or part of the farmland into a charitable trust and sell the land in the tax-free environment of the trust. The trust would be designed to pay you income for life or a term of years. When the trust terminates, the funds remaining in it become a gift to your favorite ministries. Through this gifting option, you also avoid the capital gains tax and receive a charitable deduction for your generous gift.