Giving Stock, Real Estate, or other Appreciated Assets
NEW!! Gifts from an IRA
It's official—the president signed the charitable IRA rollover extension into law, in effect for 2010 and 2011. Donors aged 70½ or older are once again eligible to move up to $100,000 from their IRAs directly to Lutherhaven Ministries without having to pay income taxes on the money. Contributions for the 2010 tax year can be made retroactively through January 2011. Here's a great summary of the ruling.Gifts of stock, mutual funds, or other securities
A great way to give more to Lutherhaven than you originally invested, plus you can take a deduction for the current market value on the date of the gift.In order to take the deduction for gifts of securities at their current value, you must have owned them for at least a year and a day.
The best stocks to donate are those that have increased greatly in value, particularly those producing a low yield. In order to preserve tax advantages, it is critical that you transfer the securities to Lutherhaven rather than the proceeds from a sale. Lutherhaven's broker then sells the stock in our name.
Appreciated securities
If you donate stock that has risen in value and that you’ve held for more than one year, you pay no capital gains tax on the transaction and are entitled to a charitable deduction for the full fair market value of the stock. (Your income tax deduction is limited to 30 percent of your adjusted gross income. Any excess can be carried forward the five additional years.) If you wish to continue investing in a specific stock, you could donate the stock to us and then use cash to purchase shares with the same company, thus increasing your cost basis to current fair market value.Depreciated securities
If you have stock losses, generally you should not contribute the stock, but rather sell the stock yourself to realize the loss for tax purposes. You can then contribute the cash and take a charitable deduction.Mutual funds
The charitable contribution of mutual fund shares can provide the same tax advantages as a gift of appreciated stock. Due to the complexities involved in the transfer of mutual fund shares, we encourage you to begin the transfer process well before December 31.Gifts of Real Estate
If you own property that is not subject to a mortgage and has appreciated in value, a charitable gift may be an attractive option. You can claim an income tax deduction based upon the fair market value of the property, avoid all capital gains taxes and remove that asset from your taxable estate. Or, you can transfer your home or farm to us now and continue to use the property for life. Due to the complexities involved, we encourage you to contact us to discuss the possibilities.For More Information About Giving to Lutherhaven Ministries
or to schedule a visit to your home,
group or congregation
Bob Baker, Executive Director
Toll Free 1.866.729.8372
Local 667.3459 x 11