Charitable Gifts of Appreciated Assets

Charitable Gifts of Appreciated Assets December 14th, 2016





As we come to the end of the year and a business owner is thinking of selling their business within the next year or two, it might be a good time to declare a gift of appreciated stock or assets to charity.

Also, if there is ultimately a gift that you would make for charitable intent and charitable purpose but yet you don’t know exactly what that intent or purpose currently, you potentially could give the appreciated asset to a community organization or community charity that could process that gift in a donor-advised fund allowing you flexibility to direct your gift at a later date to whatever charitable purpose you are passionate about.

Gifts of appreciated assets provide double benefit as you get a tax deduction for the fair market value of the asset and you don’t recognize gain that may be inherent in your asset. Income-tax driven and estate-tax driven benefits are a plus with the charitable intent following the succession plan that you might be looking at deploying.

If you had a charitable intent to give anyway upon your sale, as long as you maintain control of your decision making and your process as you walk through the sale of your business, these might be great decisions to be made now while you are waiting to figure out how you might go about selling your business.

Just a good year-end reminder.

Thanks for everything. Merry Christmas and a happy new year!

Dale Gillmore, December 12, 2016