Extra Tax Savings When you Donate Appreciated Securities

When you donate shares of stock, mutual funds, or other securities that you have held outside a retirement account for a significant amount of time, you will receive not only your standard tax deduction on your gift, but savings on long-term capital gains taxes as well. Depending on your tax bracket, Uncle Sam may refund nearly 50% of your donation when you do your taxes. You may also realize substantial state tax savings. Below are some hypothetical savings for donors in two different tax brackets. Consult your tax advisor for details on how this will apply to your specific situation. In both cases, we are assuming that you are donating $5000 worth of stock that you purchaced for $1000 fifteen years ago:

Your tax tavings ...

Please consult your tax advisor for details on state tax savings and what your specific federal tax savings will be.