Gifts of Appreciated Securities

Smart gift planning combines charitable intent with cost-efficient planning techniques. Of critical importance is the kind of asset used to fund the gift. Usually, long-term appreciated property can generate the most favorable tax benefits. This is because gifts of such property provide a double benefit—a charitable deduction, in most cases, for the full fair-market value of the property—plus avoidance of any potential capital-gain tax.

The chart below illustrates the additional tax savings from a gift of appreciated assets.

 

 

Cash

Appreciated Property

 A.

 Fair-Market Value

$10,000

$10,000

 B.

 Cost Basis

 10,000

   4,000

 C.

 Capital Gain

         0

   6,000

 D.

 Capital-Gain Tax (15%)

         0

      900

 E.

 Charitable Deduction

 10,000

 10,000

 F.

 Actual Tax Savings (24%)

   2,400

  2,400

 G.

 Total Tax Savings (D+F)

   2,400

  3,300

Next Steps

Contact Us

For further information, please contact:

Office of Planned Giving
The Metropolitan Opera
Lincoln Center
New York, NY 10023

Phone: 212-870-7388
Email: encoresociety@​metopera.org
Tax ID Number: 13-1624087

Disclaimer

For further assistance, please contact:

This publication was prepared by Pentera Inc., an Indiana business corporation, which is independent of the Met. Pentera is solely responsible for its content, and the Met disclaims all liability. The information is intended to introduce certain concepts, and we caution you not to rely on it for any legal, tax, or other purpose. You should obtain the advice of your own legal and tax advisors before making any gift.

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