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Sue and Jim Wilson bought their first home many years ago. As they were landscaping in the yard, painting and fixing up that home, Jim was impressed with the home improvement store. They were making many trips down to the store and Jim felt that the home improvement staff was very friendly and helpful. They did not have a lot of resources, but Sue and Jim decided to buy stock in that store.
Jim: Over the years, that stock in the home improvement store increased in value. It now is worth much more than we paid for it. We paid about $10,000 for the stock and it is now worth almost $50,000.
Sue: The stock had gone up greatly in value, and we were thinking of selling that stock. We were interested in selling and reducing our tax liability. We were considering selling and writing a check for $5,000, or 10 percent of the stock value, to the California Highway Patrol 11-99 Foundation.
 Jim: I happened to be talking to a CPA at a community luncheon. He mentioned that we could probably give about twice as much, with almost the same cost ,if we gave stock rather than writing a check.
After talking to our tax advisor, we discovered that if we gave $10,000 of stock, we would receive two benefits. By giving the stock, instead of writing a check, we would receive our income tax deduction. Plus, we also would save the capital gains tax on the $10,000 worth of stock.
Sue: That is what we decided to do. By giving the $10,000 of stock ,we saved the capital gains tax on that part. Then the deduction on that part offset a large portion of the tax on the $40,000 worth of stock that we actually sold. We are very pleased with the "double benefit" from giving the stock, and our favorite charity, the CHP 11-99 Foundation, received a very nice gift to support its Scholarship and Benefits Programs.
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 and sale benefits under federal rules may be different from this person, you may want to click here to view a color example of your gift benefits.
For more information please select one of the following options:
1. If you would like to see how the "double benefit" of giving part of the stock and selling the balance might work for you, then click here.
2. If you would like to request a printed illustration of a Gift and Sale with your payout rate, then click here.
3. You may print a Gift and Sale tri-fold brochure. Click Here.
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