Donating appreciated securities – such as stock or mutual funds – to Greater Albuquerque Habitat for Humanity is a tax-wise approach to changing lives through home ownership.
A gift of stock owned for more than one year entitles you to a charitable deduction for the full market value at the time the gift is made. If the stock has appreciated, you also avoid a capital gains tax on the appreciation.
In addition to helping Greater Albuquerque Habitat, you may diversify away from low-basis, long-term holdings, into other assets that will better suit your current needs. Many donors choose to give gifts to Greater Albuquerque Habitat for Humanity using long-term appreciated stocks and mutual funds due to the attractive tax advantages associated with such gifts.
The benefits available to you when making a charitable contribution of stock or mutual funds may include:
- Avoiding federal and state tax on the capital gain;
- Receiving an income tax deduction (federal and most states) for the full market value of the gift if you itemize deductions on your tax return and have held the assets one year or longer;
- Making a larger gift at a lower original cost to you.
- State Tax Credits
Important facts to remember:
You must itemize your tax return in order to deduct a charitable donation.
You must have owned the securities for at least one year before donating them or you will be limited to a deduction of your original purchase cost of the securities.
You may take a deduction valued up to 30% of your adjusted gross income. If the deduction is greater than 30%, you may carry any unused deduction forward for up to five years into the future until it has been fully used.
We encourage you to consult your financial planner or tax advisor who can assist you in evaluating the tax advantages available to you when making a donation of appreciated securities.