Use Appreciated Assets

One of the easiest and most tax-savvy ways of giving to AMS is to give appreciated assets, such as stock. When you give appreciated assets, you avoid all capital gains tax and get a tax deduction for the full amount of the gift, as long as you have owned the stock for at least a year.

  • Stocks, bonds, mutual funds, business interests

    Example: George bought ABC stock when it was only $100/share. With ABC stock now valued at $550, he can give the stock to AMS, get an income tax deduction for the full $550/share market value, and avoid paying capital gains tax on the $450/share appreciation.

    Example: Sam is the owner of a successful family business partnership. He is a 50% partner with his two sons, and he would like eventually to transfer controlling ownership to them. He can give a share of the business to AMS, get a tax deduction for its value, and then his sons can purchase the shares at some future date. He make this gift every year, eventually transferring full ownership to his sons.

  • Appreciated real estate

    Example: Sue owns a beach condo on Cape Cod that she purchased years ago for $100,000, which is now valued at $500,000. She used to visit regularly but now finds the condo has become a burden. She can give the condo to AMS, get a tax deduction for the entire $500,000, avoid paying tax on the $400,000 capital gain, and relieve herself of the expense of maintaining the property.