Stocks & Bonds

Gifts of Marketable Securities

Long-term appreciated securities, such as stocks, mutual funds and bonds, are one of the most popular forms of outright gifts. Gifts of appreciated long-term securities usually generate a deduction at the fair market value of the securities, rather than the cost basis, while at the same time relieving you from paying capital gains taxes on your gift because the gift is not considered a sale. The only limitation on these types of gifts is that the deduction for income tax purposes is limited to 30% of the donor’s Adjusted Gross Income during the year the gift is made.

Gifts of Closely Held Stock

Stocks from a corporation can be given to Prairie View A&M University. Donors can avoid the capital gains tax on the appreciation of the stock while also deducting the fair-market value of the stock for income tax purposes. This deduction is limited, however, to 30% of the donor’s adjusted gross income in that same year.

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