Gifts of Appreciated Securities

Smart gift planning combines charitable intent with cost-efficient planning techniques. Of critical importance is the kind of asset used to fund the gift. Usually, long-term appreciated property can generate the most favorable tax benefits. Reason: Gifts of such property provide a double benefit—a charitable deduction, in most cases, for the full fair-market value of the property—plus avoidance of any potential capital-gain tax.

The chart below illustrates the additional tax savings from a gift of appreciated assets.

 

 

Cash

Appreciated Property

 A.

 Fair-Market Value

$10,000

$10,000

 B.

 Cost Basis

  10,000

   4,000

 C.

 Capital Gain

         0

   6,000

 D.

 Capital-Gain Tax (15%)

         0

     900

 E.

 Charitable Deduction

 10,000

 10,000

 F.

 Actual Tax Savings (24%)

   2,400

   2,400

 G.

 Total Tax Savings (D+F)

   2,400

   3,300

More Information

Contact Us

giftplanning@aat.org
253.683.3943

 

America's Automotive Trust
2702 East D Street
Tacoma, WA 98421

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Ensuring America's Automotive History is Preserved

1965 Lotus F2There are many factors that show America's automotive history is at risk:

  • Our education system emphasizes college-prep and focuses less on the applied arts, crafts and trades. Meaning less young adults are entering the workforce in the areas of restoration and preservation of vintage vehicles, including motorcycles, boats and planes.
  • Car services are becoming more popular and are competing with traditional car ownership.
  • Technological advances have made modern cars more reliable and longer lasting – reducing the need for local repair shops. Hyper-sophisticated safety and environmental requirements make it difficult for a local mechanic to maintain or repair vehicles.
  • Government sponsored museums are dedicated to art, technology, history, air and space, but there is no Smithsonian for the automobile. Many traditional car museums have a limited purpose beyond showcasing the collections of its founders. They're often static in nature, have limited cultural reference and unfortunately, often collapse with the death of their founders with collections sold and dispersed.
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