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Charitable Tips Tip #1 - Donate stock that is appreciated in value A win-win opportunity for you and the Crimson Club! You can donate appreciated stock and you won’t have to pay capital gains taxes on the profits, and the full value of the stock can be deducted as a charitable donation to the Crimson Club. That Sounds Good, How Does It Work? Say you own $10,000 worth of stock that you originally bought for $3,000. If you sell it now, you’ll pay tax on the $7,000 profit. If you’re in the 28 percent federal tax bracket, and qualify for the 20 percent long-term capital gains rate, you will pay $1,400 in taxes. That reduces your $10,000 to $8,600, and lowers your potential Crimson Club contribution. If you give the $10,000 worth of unsold stock to the Crimson Club, the IRS kindly lets you claim a tax deduction for the full $10,000, earning you a nice tax deduction on the full amount of your gift. Plus, you instantly become a member of the Crimson Club’s Scholarship Circle, the highest membership level, while providing a full in-state scholarship for a talented Ute student athlete! It’s a win-win contribution. To learn more about the benefits of giving unsold appreciated stock to the Crimson Club, and how you might benefit from this type of gift, please contact the Crimson Club office and consult your personal tax advisor to see how this charitable tax tip can provide an advantage for you and the Crimson Club. |