Capital gains (profits from the sale of stocks, bonds, and other assets) incur federal and, in some cases, state income taxes. The capital gains tax may be avoided by making a charitable gift to the Museum of the property under consideration.
In most cases, providing you have owned the property for at least a year, you may take a deduction based on the property’s full value, rather than just its cost. The tax savings will depend on the type of property, its use, the amount of the increase in value, and other variables.
If securities have decreased in value since you have owned them, it is usually more prudent to sell the securities and donate the cash proceeds to the Museum. You may then be able to claim tax deductions for both the capital loss and the charitable gift, effectively deducting more than the current value of the asset.
The Museum’s Vice President for Finance and Administration and Vice President for Institutional Advancement will be pleased to advise you on how to make a gift of appreciated securities to the Museum.