--- In [email protected], "Cliff" <[EMAIL PROTECTED]> wrote: > Since Fred's (and my) basis in the stock was zero (meaning he had > founder's shares), he could give away 100% of it with no > tax consequence at all. > > Bob is (and I'm sure he's grateful for the fact) not a tax specialist. > It's true that you can only write off a maximum of 50% of your > income as donations, but that doesn't mean you can't donate > far more. Fred could have made $1,000 and donated shares worth > $50,000,000. He could only have written off $500, but would > not have owed anything on the donated shares. >
********** Yes, Cliff is right here (partially) -- I didn't really research this, which would have been easy: "By donating appreciated stock, you maximize your gift to the charity while minimizing your taxes. Instead of selling the stock and paying capital gains taxes out of your pocket and then sending the cash to the charity, you can donate the appreciated security to the charity, which can then sell the asset on its own without tax consequences. And you can deduct the full market value of the holding at the time of donation." http://www.camneelyfoundation.org/donation/index.php Fred would have had to pay taxes only if he had sold the stock first, then donated that money. But I don't see that Fred's having founder's stock as being relevant. Whether he paid zero or x dollars for the stock, what would avoid tax consequences would be the act of donating the stock to a charity direct, rather than selling it and then donating. If Fred had sold shares for twenty dollars that he got as a founder for zero dollars, then he would have had to pay capital gains, right? And as I recall, Cliff, you are not a tax specialist, either, are you? To subscribe, send a message to: [EMAIL PROTECTED] Or go to: http://groups.yahoo.com/group/FairfieldLife/ and click 'Join This Group!' Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/FairfieldLife/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
