Gifts
of Cash
For many, an outright gift of cash is certainly the
simplest method of giving. It is not subject to gift taxes and it is removed
from your estate for estate tax purposes; plus you can deduct the gift amount
on your federal income tax return, up to 50 percent of your adjusted gross
income. Should the gift total exceed the gift ceiling for one year, you can
carry over the remaining deduction to succeeding tax years until it is
exhausted, or for up to five years, whichever comes first.
Gifts of Securities
Giving
appreciated stocks or bonds is a superb way to show support for GPRMC programs.
With certain limitations, you can deduct the full fair market value of
long-term appreciated securities; that is, securities you have owned for more
than one year and that have increased in value. Thus you can give away
appreciated property and usually avoid the tax on the gain.
Gifts of
securities are deductible up to 30 percent of your adjusted gross income, with
a five-year carry-over. Under certain circumstances, however, you can choose to
qualify for the 50 percent adjusted gross income ceiling by reducing the value
of your gift by the full amount of its appreciation; that is, to its cost basis
(what you paid for the asset).
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Gifts of Property
Tangible Personal Property:
This
includes such items as works of art, antiques, books, gems and the like. You
may give an item whether or not it has increased in value since you obtained
it. Perhaps the greatest tax benefits
come, however, when the donated object is what the Internal Revenue Service
(IRS) considers "long-term capital gain property." As mentioned in
the section on securities, this means simply that the asset has appreciated in
value and you have held it for more than a year.
Your
income tax deduction will depend upon the nature of the gift and its
correlation to our stated, tax-exempt mission. If our use of the gift is
related to our tax-exempt purposes, it qualifies for an immediate income tax
deduction equal to its fair market value on the date of the gift. If our use of
the gift is not related to our tax-exempt purposes, your charitable deduction
is restricted to the asset's cost basis. You may claim the deduction in the
year the gift is made - up to 30 percent of your adjusted gross income, and
carry it over for up to five years.
Intangible Personal Property:
You may
also make gifts of personal property that cannot be seen or touched. Such
property is called "intangible" and it includes copyrights,
securities, patents, contracts, promissory notes, royalties, trademarks and the
like. Unlike tangible property, intangible personal property does not have to
be scrutinized for income tax purposes, such as its relevance to our tax-exempt
mission.
As far as
gift and estate taxes are concerned, tangible and intangible personal property
is treated the same. An outright gift of tangible or intangible personal
property is not subject to gift taxes and is removed from your estate for
estate tax purposes.
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Real Estate:
Almost
any type of real property; a personal residence, a farm, a vacation home, a
commercial building or an undeveloped parcel of land can be the subject of a
gift. Gifts of real estate can be made either outright or through one of the
methods discussed later.
If the
property is long-term capital gain property, and given outright, you'll
generally avoid any tax on the gain, reduce your taxable estate by the value of
the gift (for estate tax purposes) and receive a charitable contribution
deduction for 100 percent of the fair market value of the property.
Your
actual income tax savings will depend on your tax bracket. You may deduct the
value of the gift, up to 30 percent of your adjusted gross income. Under
certain circumstances, however, you can choose to qualify for a 50 percent
annual deduction by reducing the value of your gift to its cost basis.
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Gift of Residence or Farm with a Retained Right to Use the
Property:
Because of special
provisions in the tax laws, you can give us your personal residence or farm,
yet continue to live there for the remainder of your life. Further, you can
provide that your spouse may live there for his/her lifetime; or you may
continue to live on the property for a set number of years. Either way, you
will receive an immediate income tax deduction for the contribution.
Gift of Undivided Interest in Property:
You are allowed a charitable deduction for the value of
an undivided portion of your entire interest in a property. This consists of a
fraction or a percentage of each substantial right or interest in the property.
The donated interest must extend over the entire term of your interest.
CONTACT US
The Vice President of
Development is available between the hours of 8:00 a.m. - 5:00 p.m.
Phone:308-696-7411
Toll Free:800-662-0011
E-mail:foundation@mail.gprmc.com
"Thank you for Caring"
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