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IT'S BETTER TO GIVE THAN TO RECEIVE; TO DEDUCT IS BETTER STILL
December 17, 2007
It's the time of year for giving. If you are in the under-70 set, you can't make big charitable contributions out of your IRA. Taxwise, then, your best way to give is with appreciated long-term capital gain property. A gift of, say, appreciated stock to a public charity is deductible at full fair-market value, and you never have to pay tax on the appreciation.
Publicly-traded stock is the most convenient way to give appreciated property, as there is no requirement for an appraisal. If you donate other long-term capital gain property, you have to get a "qualified appraisal" on gifts of $5,000 or more. No appraisal, no deduction. And remember, the stock has to be long-term capital gain property, held for over one year; ordinary income property is normally only deductible at cost (or value, if less).
Other year-end planning links:
Gina on 2007 IRA contributions
Kay Bell's year-end series, installments three, four and five.
This is another installment of our series on 2007 year-end planning. Check pack each day for another post through December 31!
• 2007 Year-end Planning Bookmark: del.icio.us • Digg • reddit
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The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to
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