Appreciated Property
Giving certain types of noncash items that have appreciated in value can offer significant tax advantages. When you give appreciated assets such as real estate, publicly traded stock, or virtual currency that you have held for more than one year, you typically qualify for a deduction based on the full fair market value of the asset given without having to pay income tax on the appreciation of the asset. This avenue of giving is especially beneficial because CMC, as a tax-exempt organization, can sell these gifted assets without paying tax on the gain. The combination of you, the donor, being able to deduct the full fair market value of the asset donated, together with the exclusion from tax on the gain, results in both a maximum tax deduction for you and maximum funds available to CMC for the advancement of God’s kingdom. Note: These advantages do not apply to retirement assets such as IRAs, 401(k)s, etc..
How it works:
- Contact Greg John (greg@cmcroanoke.org) to obtain the CMC brokerage account information needed for the transfer.
- Contact your broker or financial advisor and request a gift of stock providing the CMC brokerage account as the recipient (specific instructions will vary).
- You should request that the shares be transferred electronically to the church’s account using the DTC information from Greg.
- Do not sell the stock yourself if you wish to receive the full advantages of this gift.
- CMC will send you a formal tax acknowledgment letter shortly after the transfer is complete. Please keep this letter for your tax records. CMC is not allowed to provide the dollar value for your deduction, but you can typically use the average of the high and low trading price of the stock on the date it arrives in the church's account as the gift’s value.