Tax Tip of the Week
900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
For the week of
September 25, 2000
Be charitable, and enjoy this win-win tax break
Many tax loopholes have been closed over the past several
years. One that remains available to you is the gifting of certain appreciated property to a qualified charity.
Under the current tax laws, you are allowed to take a charitable deduction for the full fair market value of the
certain donated property. And you can do so without paying tax on the built-in capital gains. There are limitations
on the types of property that qualify for this special tax treatment.
Look at this example to see how you might benefit
from this tax break:
Several years ago Betty purchased 100 shares of X company for $1,000. Today those shares are worth $10,000. If
Betty sells the shares and donates the cash to charity, she must first pay capital gains tax on the $9,000 gain.
This leaves her with a smaller donation and a smaller charitable deduction. If she donates the shares, she gets
a full $10,000 charitable deduction, no capital gains tax, and the charity gets a full $10,000 gift. Betty wins,
and the charity wins.
If Betty would still like to own stock in X company, she can acquire new shares.
Please call us; we will gladly assist you with
your tax planning. You do not need to be an existing client of our firm to call us.
Click here to view previous tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
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