St Edmund's Episcopal Church San Marino


Give To The Next 75 and
Get A Double Tax Break

How can I give to the Next 75 and get a double tax break?

Give an appreciated asset.

For example, if there is a stock (or any other asset) that was purchased for $1000 and is now worth $10,000, there is a gain of $9000. If that stock is sold and the proceeds are donated, the donor will receive a $10,000 charity deduction. However, the $9000 gain on the sale is a taxable event.

If the donor donates the stock instead of selling it first and then donating the cash, the donor still receives the $10,000 charity deduction but the gain is not taxed since the donor did not sell the stock. The recipient (St Edmund’
s) sells the stock and
as a 501(c)(3) organization, no tax is due on the sale.

This strategy is not permitted with retirement accounts such as 401k’s or IRA’s. However, there are gifting benefits available for retirement accounts if Required Minimum Distributions (RMD’s) are being taken.

Please discuss with your tax advisor applicability to you before using a gifting strategy.