Donating Appreciated Securites

As is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving. For years, they have created a gift list that includes family members, friends and loved ones. Last year Jim and Sharon Cohen made an addition to their list and began including the Jewish Federation of Las Vegas in their plan.

Sharon: Years ago, I inherited stock from my grandmother. We held the stock for several years, but decided to sell a portion of it this year. The stock had gone way up in value, and our CPA informed us that we had a capital gain of nearly $120,000. We had always planned on making a charitable gift and the CPA reminded us that if we were to make a gift of this stock before the end of the calendar year, we would receive a charitable deduction on the shares. This deduction will help offset the capital gain tax on the stock we sold to benefit our family.

Jim: We contacted the Jewish Federation of Las Vegas to discuss the best way to make a gift. Some of the most common gifts are a gift by check or by transfer of bonds or real estate, to name a few. However, it would be especially beneficial for us to think about giving some of our appreciated stock.

Sharon: We were still holding $80,000 in the same highly appreciated stock, and did not intend to sell, primarily because of the substantial capital gains tax we already faced. To sell any more would only increase our tax.

Jim: That is what we decided to do. By giving the $80,000 in stock to the JFLV, we received two benefits. First, we avoided a large capital gains tax on that stock. And then, we received a charitable deduction. The deduction even offset the capital gains for our prior stock sale. We are very pleased with the double benefits of our gift. And, we're delighted that we've been able to make a nice charitable contribution to the Federation.

Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your gift benefits under federal rules may be different from this person, please contact Daniel Prepas at


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