You Can Be Tax Wise With a Gift of Stock
A gift of appreciated stock generally offers a two-fold tax advantage: you avoid paying capital gains tax on the increased value of the stock and you receive an income tax deduction for the full fair market value of the stock at the time of the gift.
“All you need to do is obtain the transfer information from the foundation and then write a letter to your broker instructing him to make the transfer. If you sell the stock and write a check to the foundation directly, you will lose the tax benefit of transferring an appreciated asset,” said Russell WH Kridel, MD, FACS, Houston, when he made a “tax wise” gift of stock to the TMAF.
If you have owned stock for more than a year, you may qualify for these significant tax advantages. Your gift of stock must be transferred to TMAF on or before December 31 to qualify for a deduction in that tax year. Therefore it is wise to contact your broker or trust officer several weeks in advance to ensure the transfer takes place in time.
It’s Easy to Make a Gift of Stock!
1. Call TMAF to obtain this "stock transferring information:" a) our gift account name and account number; b) the name and DTC number of TMAF's brokerage firm. Calling us in advance also will allow us to alert our broker to receive the stock.
2. Let TMAF know if there is a specific purpose for the contribution, such as an annual gift, pledge payment or a gift restricted to a specific program.
If you have a brokered account , donating stock through electronic transfer is the easiest and most expedient method. Depository Trust Company, or DTC, is the clearinghouse for TMAF's electronic security transfers. Each brokerage firm has a specific DTC number. Provide TMAF's "stock transferring information" (see above) to your transferring broker, along with the name of the stock and the number of shares or value you wish to transfer. You will receive an official receipt from TMAF for the value of your gift as of the close of the stock market on the day of transfer.
If you have stock certificates , you will need a "stock power" form from TMAF or your broker to reregister the stock in TMAF's name. Send the completed and signed stock power form to TMAF and under separate cover send your unsigned stock certificates to TMAF. Please contact TMAF, as we do not recommend sending a signed certificate through the mail.
Please check with your personal tax advisor regarding how donating stocks may affect your particular tax situation. If you have questions about donating to TMAF, please do not hesitate to contact TMAF Executive Director, Lisa Stark Walsh at (800) 880-1300, ext. 1666 or lisa.walsh[at]texmed[dot]org .
Last Updated On
March 03, 2017