Year-End Tax Planning

We are rapidly approaching the end of another year and as much as we hate to think about it, we have to think of our tax planning. This is the popular time for making gifts! Many thoughtful donors review their stock holdings and select those stocks which have appreciated the most and which have been held for more than a year. These donors choose to make their year-end gifts with stock rather than cash, thus benefiting both the donor and the donee.

Let me give you an example.

Lets say that brother John Doe purchased some stock several years ago for $1,000.and this stock now has a Fair Market Value of $5,000. If he sold this stock he would have a taxable gain of $4,000. However, if Brother Doe gave the stock to the Valley of Cleveland Foundation, he would obtain a charitable income tax deduction (assuming itemization) of $5,000 and would not have to declare the gain.

Have you considered making a gift of appreciated stock? To learn more of this, talk to your Tax Consultant or call Wilbur Smith at the Valley office. Consider a stock gift to the Valley of Cleveland Foundation.