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Gifting Stock or Collectibles

By: Bob Carlson

A charitable deed plus tax savings

The best charitable gifts are of appreciated long-term capital gains property, such as stock shares or collectibles. That's because you get a deduction for their full value while avoiding ever paying capital gains tax on their appreciation (such as if you sold them and then donated the cash proceeds).

The most tax can be saved on collectibles, because the long-term gains rate on them is 28% rather than the 15% top rate as on stock shares and other investments. Talk to your tax adviser about special rules that may apply to donations of your collectibles.

Original Published date: Originally Published in Tax Hotline on 09/05 page 15
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