Albert met with his advisors to discuss the company's value and identify potential buyers. Because the company's client base and product offerings had grown significantly over the years, Albert soon realized that the business would sell for a significant sum.
One of Albert's advisors recommended that he consider making a gift of some of his stock to his favorite nonprofit organization. If Albert made the gift prior to the sale of his business, he would avoid capital gains tax on that stock and receive a charitable income tax deduction to further reduce his taxes on the cash he received from the sale.
Albert's tax deduction made it possible for him to preserve his wealth by avoiding the payment of substantial capital gains tax on the sale of his business. As a result, Albert was able to use some of the cash from the sale to purchase a condominium and invest the balance for retirement.
Donating appreciated securities, including stocks or bonds, is an easy and tax-effective way for you to make a gift to Santa Barbara Museum of Natural History.
An outright gift of stock can provide several tax benefits such as generating a charitable tax deduction and avoiding capital gains tax. Please contact us if you have questions about outright gifts of stock.
Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to create a printable illustration of your income and tax benefits with our calculators.
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