For gifts of long-term appreciated publicly traded securities (i.e., securities that you have owned for more than one year), a donor may claim a fair market value deduction on the gift date. Furthermore, the donor is not subject to a capital gains tax on the appreciated portion of the contribution.
Generally speaking, the fair market value is determined by averaging the highest and lowest quoted selling prices on the date the gift is received.
The deduction for donated securities that a donor has owned for one year or less is limited to the cost basis or current market value, whichever is lower.
Gifts of appreciated securities may be deducted up to 30% of adjusted gross income in the tax year in which the contribution is made. Any excess amoung may be carried forward and deducted up to the 30% limit in the 5-year period after the year of contribution.
Please note: Additional and different rules or limitations may apply with respect to your tax treatment, depending upon your specific circumstances. Please consult with your tax advisor. The Jewish Communal Fund is not responsible for the accuracy of any position taken by donors on their tax returns.