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Tax Benefits For Charitable Gifts

Different types of gifts generate different tax results

Individual taxpayers itemizing deductions are generally allowed charitable deductions for gifts made to church or qualified charities.

Gifts of cash are generally deductible up to 50% of adjusted gross income (AGI) in the year the gift is made. Contributions that exceed the deductible limit for that year may be carried over and deducted in the five following years.

Gifts of appreciated property (securities, real estate or other appreciated property) can be deductible up to 30% of adjusted gross income (AGI) in the year the gift is made. As a general rule, the higher the tax bracket the greater the tax savings. Any amount not deductible in the year of the gift can be carried over for up to five future tax years.

Capital gains tax savings is an additional tax benefit available when long-term capital gain property is given to the church or charity. Capital gains property or appreciated property is property which has been owned for more than one year and has also increased in value. When a gift is made of long-term, appreciated property, the capital gains tax is avoided by both the giver and the receiver. The Church will receive the full Fair Market Value of the property when it is sold and the giver is entitled to an income tax deduction for the full Fair Market Value of the asset--not just the purchase price. Currently capital gains property is generally taxed at 15%.


Stock with Fair Market Value $10,000

Stock with Fair Market Value $10,000
(Cost Basis $2,000)(Cost Basis $2,000)
Taxable Gain: - 0 -Taxable Gain on Sale: $ 8,000

Capital Gain Tax due: - 0 -

Capital Gain Tax - 15%: $ 1,200
Net Gift to Global Ministries: $10,000Net Sale after Tax $ 8,800
Charitable Tax Deduction: $10,000Charitable Deduction: $ 8,800
Tax Savings (25% Tax Bracket):
Tax Savings (25% Tax Bracket):

If qualified property has decreased in value, consider selling it and making a deductible gift of the cash proceeds. This creates a loss which can be deducted from other taxable income along with the cash gift.

Special rules apply to the tax benefits available for gifts of collectibles, art, jewelry, antiques and other personal property.

Before making a gift check please check with your professional advisors.