|
|
 |
 |
Securities & Mutual Funds
Current tax laws make it possible for you to make a gift of appreciated securities to UCSD at a remarkably low after-tax cost. When you give appreciated property, you not only receive a deduction for the full value of the asset, but you also avoid the capital gains tax that would have been due if you had sold the property. The savings can be significant considering the combination of federal capital gains tax and state income tax (the treatment of capital gain varies from state to state*).
*Although the capital appreciation portion of the value of an asset is no longer a preference item for federal alternative minimum tax purposes, it remains a preference item in the calculation of alternative minimum tax in the state of California.
It is important to remember that in order to maximize the tax benefits available to you the shares must be transferred to UCSD first before they are sold. The value of your contribution is determined by the date on which the gift of shares is complete. This may be the date of delivery, postmark, or date of transfer, depending on how your gift is made. Essentially, the gift is complete when the shares are under the control of UCSD.
Contributing shares of a mutual fund usually involves establishing an account in the name of the U.C. San Diego Foundation at the mutual fund company, then transferring the shares to this new account. It may take a little more time than a transfer of shares of stock, but it's an excellent method for making a gift of appreciated securities. Please contact the UCSD Office of Planned Giving for further instructions and assistance.
For more information about donating appreciated securities and mutual fund shares to UCSD, please contact us.
Copyright © University of California, San Diego, All rights reserved.
The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income tax include federal taxes only. Individual state taxes and/or state law may impact your results.
