Donating shares of appreciated stock to RPA can make you eligible for a tax deduction, and can help you grow your donation, tax-free.
Benefits of making a stock donation
Individuals who donate appreciated stock to RPA deduct the current fair market values of the shares on their taxes, not the price originally paid for them. This allows you to avoid taxes on capital gains on the donated shares in the future. You are fundamentally donating with a monetary gain that you never realized and thus will never pay taxes on.
How it works
For example, you bought 100 shares of a company when the stock was trading at $10, and those shares are now worth $50 each. If you donate the shares, you get to deduct $5,000 from your taxes, even though you only paid $1,000 for them. For more information about donated stock, please see the IRS Information Letter 2001-0277.
What you need
In order to receive the full deduction, you will need to donate only long-term holdings defined by the IRS as being held for a minimum of 12 months. RPA will provide you with a tax receipt upon receiving the donation. You will also need a dated letter from your broker identifying how many shares were donated to RPA.
In order to realize the greatest possible tax savings, and if you acquired a block of shares over time at different prices, make sure to donate the shares that you acquired at the lowest cost. These shares contain the biggest amount of locked-in capital gain that you can avoid getting taxed on.
To donate a stock gift, please see below wiring instructions. You can also contact Dinh Truong, Managing Director and Wealth Manager at First Republic.
DTC number: 0443
Institution: Pershing LLC
Account Name: Regional Plan Association, Inc.
Account Number: 33L076040
Managing Director | Wealth Manager
First Republic Investment Management
First Republic Private Wealth Management
1230 Avenue of the Americas 2nd Floor | New York, NY 10020-1513
Office: (212) 259-5030 | Mobile: (917) 627-3890 | Fax: (212) 259-4017 | Email: [email protected]
Registered Representative of First Republic Securities Company, LLC
NY Insurance #LA-946232