Gifts of Securities

Your gift of appreciated securities is deductible at their full fair market value and you pay no capital gains tax on the appreciation. For example: Janet gives stock worth $10,000 that cost her $5,000. She can deduct the full $10,000, and in the 40 percent income tax bracket, she saves $4,000. Plus she saves $1,000 in capital gains tax on appreciation – a total tax savings of $5,000. Thus her cost is only half of her total gift.

If your securities are valued at less than you paid for them, you can sell them and contribute cash proceeds. You receive a tax deduction for your cash gift and can claim the loss on sale on your tax return.

Securities may be made as outright gifts or as a payment on a pledge. It is best to consult with a development officer before a transaction is made. For general questions on securities, contact Michele Cesca, Associate Vice President, Central Development and Major Events, at 657-278-4869 or mcesca@fullerton.edu .