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Bypass Capital Gains Tax

Funding gifts with appreciated assets is a great way to recognize tax savings. A gift of closely held stock that has appreciated greatly can be a wise tax move. When you give the stock to our Rescue Mission, you receive an income tax deduction for the full fair market value of the stock, and you do not owe any capital gains tax on the appreciation. Likewise, the Rescue Mission is exempt from paying capital gains on the sale of the stock, meaning you’ve ultimately made a major gift for pennies on the dollar.

You may also use appreciated assets to fund gift arrangements that pay you income. This will change your overall tax deduction but still allow you to bypass capital gains taxes.

An outright gift of real estate or personal property (e.g. jewelry, art, antiques, etc.) can also offer relief from capital gains tax, as well as income tax savings. Real estate and gifts of personal property are subject to very specific IRS regulations, and it is best to contact the Rescue Mission directly regarding these gifts.

If you would like to learn more about ways to bypass capital gains tax through charitable giving, please call Woody Tausend at (510) 215-4889.