Benefits of making a stock donation
Individuals who donate appreciated stock to RPA deduct the current fair market values of the shares on their taxes, not the price originally paid for them. This allows you to avoid taxes on capital gains on the donated shares in the future. You are fundamentally donating with a monetary gain that you never realized and thus will never pay taxes on.
How it works
For example, you bought 100 shares of a company when the stock was trading at $10, and those shares are now worth $50 each. If you donate the shares, you get to deduct $5,000 from your taxes, even though you only paid $1,000 for them. For more information about donated stock, please see the IRS Information Letter 2001-0277.
What you need
In order to receive the full deduction, you will need to donate only long-term holdings defined by the IRS as being held for a minimum of 12 months. RPA will provide you with a tax receipt upon receiving the donation. You will also need a dated letter from your broker identifying how many shares were donated to RPA.
In order to realize the greatest possible tax savings, and if you acquired a block of shares over time at different prices, make sure to donate the shares that you acquired at the lowest cost. These shares contain the biggest amount of locked-in capital gain that you can avoid getting taxed on.
Contact
To donate a stock gift, please see below wiring instructions. You can also contact William Chader or Sean Lyon at J.P. Morgan Wealth Management.
DTC Number: 0352
DTC Contra Firm: JP Morgan Securities LLC
Account#:20243112
Account Name: REGIONAL PLAN ASSOCIATION, INC.
William Chader & Sean Lyon
J.P. Morgan Wealth Management
1230 Avenue Of The Americas, Floor 02
New York, NY 10020
Email: [email protected]
Phone: (212) 352-5002