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Honor the Lord with your wealth. Give Him the first share of all your crops. Then your storerooms will be so full they can’t hold everything. Your huge jars will spill over with fresh wine.
Proverbs 3:9-10
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Giving Appreciated Assets
If an investment — like stocks, real estate, and other assets — has increased in value since its purchase and has been held for more than one year, then there may be tax advantages to transferring ownership of that asset to the church as a charitable donation. Giving the appreciated asset eliminates potential capital gains taxes for the donor while still allowing the donor to receive the contribution credit for the current market value of the asset. Because of its taxexempt status, the church can sell the asset and receive full market value less transaction costs.
What if I sell first then give the cash?
You may have to pay capital gains taxes which will reduce the after-tax proceeds from the sale.
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SELL FIRST |
GIVE ASSET |
| Market Value |
20,000 |
20,000 |
| Original Cost |
-10,000 |
-10,000 |
| Appreciated Gain |
10,000 |
10,000 |
| Tax (assuming 28%) |
2,800 |
-0- |
| After tax value of Gift to the Church |
17,200 |
20,000 |
| Contribution Credit to Donor |
17,200 |
20,000 |
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For more information or if you wish to give a Gift-In-Kind Please contact either
John Traylor, Business Manager, at 772.562.9088 or Allan Bixby, Church Treasurer, at 772.643.7751. |
Note: Tax positions and tax law can be complicated and can change with new laws. Any discussion of tax treatment is not intended, and should not be considered, as tax advice. Consult your personal tax professional for advice on your tax position. Please check with your church business office for instructions and arrangements for the transfer of all forms of gifts other than cash. |
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