|  | | Giving securities to Founding Family before the end of the year will not only help children, but save the Donor tax dollars. When you transfer stock to Founding Family, without liquidating the stock, you get two tax advantages. You get a tax deduction and avoid paying the capital gains tax on the appreciation of the stock. If you give stock worth $1,000, with a basis of $100, you will receive a tax deduction of $1,000 which may save you $300 if you are in the 30% tax bracket. You also avoid paying $213.75 in capital gains taxes because you didn't liquidate the stock, but transfered it to Founding Family. It will cost you $486.25 to give $1,000. It cost Founding Family $12.50 to give one child in rural China a new set of clothes, sandals, a book bag and school supplies. Your $1,000 gift of securities will help 80 Chinese children have new clothes, sandals, a book bag and school supplies. | |
