Gifts of Appreciated Assets
If you have publicly traded stock that has appreciated in value, you can avoid capital gains tax when you make a donation of that stock to the Foundation. If you happen to like that particular stock, you can then use your available cash to repurchase the stock at a new, higher cost basis.
While cash, CDs, and marketable securities are thought of most often when making a gift to a charitable organization, real estate is sometimes the best gift of all. Many people reach a stage in life where they simply don’t want the management responsibility that accompanies property ownership.
For those who have rental apartments or commercial buildings, not only can they avoid capital gains tax, but they can avoid depreciation recapture tax as well.
For those people with farms or vacation homes, life-income arrangements such as CRTs or Gift Annuities can be equally rewarding.
As with all transactions of this kind, consult your tax attorney, estate planning professional, or CPA before making your gift.