Avoid Capital Gains Tax on Your Appreciated Property

What You Can Do
If you donate most types of appreciated property that you have held longer than one year to a qualified charity such as St. John's University, you completely avoid the capital gains tax. We can sell the property tax-free. In addition, you receive a charitable deduction on your income taxes for the full fair market value of the asset up to 30 percent of your adjusted gross income, when you itemize on your tax return.

Consider Your Options
See how the way in which you make your donation can affect your total tax savings. The following example assumes you are in a 35 percent federal income tax bracket.

 Give $10,000 Cash to St. John's UniversitySell $10,000 in Appreciated Property and Give Cash to St. John's UniversityGive $10,000 in Appreciated Property Directly to St. John's University
Fair market value of gift$10,000$10,000$10,000
Cost basisN/A$2,000$2,000
Capital gainN/A$8,000$8,000
Federal capital gains tax
($8,000 x 15%)		N/A$1,200 due to IRS$1,200 avoided
Income tax savings ($10,000 x 35%)$3,500$3,500$3,500
Total tax savings$3,500$2,300$4,700



For More Information
Please feel free to contact Susan Damiani at 718-990-7562 or damianis@stjohns.edu with any questions you may have about giving appreciated property.