When you donate appreciated securities, you receive two tax breaks. First, you may be able to deduct these gifts as charitable donations. Second, you can avoid capital gains tax on the transfer. When giving securities, be sure to consult with your financial advisor and/or attorney. To learn more please call Kenneth Zaentz at 973-586-4300.
A gift of appreciated securities
A gift of appreciated securities can be made directly to Alzheimer’s New Jersey. You may be able to deduct the fair market value of the securities without paying federal income tax on the appreciated value. If you sell the securities and donate the proceeds, you will have to pay the capital gains tax, thus decreasing the amount of your gift. Gifts of stock may be securely and conveniently transferred electronically to Alzheimer’s New Jersey. When you are ready, please contact Nancy Wellbrock at 973-586-4300, so we can inform our broker that a transfer will be made. Then, contact your broker to initiate the gift of securities to Alzheimer’s New Jersey. Your broker will need the following information which we can provide: Account Name; Account Number and DTC Number.
A gift from your retirement plan
The IRA charitable distribution is a great way to make a tax-free gift to Alzheimer’s New Jersey. If you are age 70½ or older you can make a tax-free gift of up to $100,000 transferred directly from your traditional or Roth IRA (under certain circumstances) to Alzheimer’s New Jersey.
To qualify, the distribution check must be made payable directly to Alzheimer’s New Jersey and you must be at least 70½ on the date of the distribution –not merely turning 70½ sometime that year. You will not receive an income tax charitable deduction for the gift, but you won’t pay taxes on your IRA withdrawal, which means the IRA charitable distribution is tax-free. In addition, the gift will satisfy the required minimum distribution from your IRA. Speak with your professional tax advisor to see if an IRA charitable rollover gift meets your needs.
