Gifts of Appreciated Property

Contributions of appreciated, long-term, capital gain securities and real estate can generate the most favorable tax benefits. Gifts given to the District 207 Educational Foundation are tax deductible and your gifts don’t always need to be in cash. 

In addition to receiving a charitable deduction for the current fair market value of the gift, you may avoid the potential tax on the capital gains portion of the gifted asset. If you elect to use appreciated assets to fund a gift annuity, you will also establish an income stream that is partially tax free. 

To ensure that the tax treatment of a gift of appreciated assets is appropriate to your individual situation, you should always review such a transaction with your attorney or tax advisor. 

Example. A donor gives a $20,000 gift of marketable securities having a purchase price of $12,000 to the District 207 Foundation. ‘The donor receives a $20,000 tax deduction and avoids payment of capital gains taxes on the $8000 appreciation. In addition, if the gift is used to establish an annuity part of the future income payment will be tax free.  

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