Someone who donates real estate that has been held for more than one year is generally entitled to an income tax deduction equal to the full, fair market value of the donated property. In most cases, the donor can avoid the capital gain tax on the appreciated portion of the property that would have been taxable if the property was sold. Estate tax savings as well as avoiding probate are other possible benefits.

Other benefits include:

• Avoid or diminish capital gains tax

• Receive a charitable tax deduction

• Eliminate selling problems

• Simple to transfer ownership

• No real estate broker fees

• Possible income through annuity

As long as you have held the security for longer than 12-months, giving through appreciated securities can be a great way to support the mission and optimize your tax deduction:

Here’s How it Works…

John bought stock 10 years ago for $2,000. The stock has appreciated over the years and is now worth $20,000. John wants to help the poor and homeless in his community and donate the stock directly to The Nehemiah Project. John got a $20,000 charitable income tax deduction even though he only paid $2,000 for the stock. He avoids paying capital gain tax on the $18,000 of appreciation. The tax avoided could be $3,600 ($18,000 x 20%). Since John transferred the stock directly to the rescue mission, versus selling the stock, he also avoided paying a sales commission to his broker.

There are several ways to transfer stock to the shelter. Please be sure to contact us once your transfer has been completed. This is very important, especially if the gift has been transferred electronically to our account or a certificate has been issued in the name of the The Nehemiah Project since your name will not be associated with your donation. We would also like to say “thank you” personally and provide you with an acknowledgment letter for your tax purposes.