Few financial tools are more powerful than appreciated property, specifically stocks and real estate. They can be given at any time and have the ability to magnify wealth faster than nearly any other financial method. In many cases, a person who donates an appreciated asset to a charity instead of selling it can take a charitable deduction for the full value of the property while also avoiding capital gains on the property.
Appreciated assets are usually transferred to the AWA and then sold. In most cases, if you have held securities for more than one year you can deduct the market value of the securities and avoid paying any capital gains tax. If the shares are held in your broker’s office, transferring securities is easy. Simply contact us and we will provide your broker with all the needed information. If you have land, a second home or other real estate you wish to donate, they have similar benefits to appreciated securities. It is also possible to donate your home to the AWA and retain lifetime use of the property. A trust may be created based upon the value of the home at the time of the donation.