We make it easy for You to Support the Shul
Have you ever thought of making a donation to Nusach Hari B’nai Zion in the form of Stocks?
Pay for your Dues and Pledges!
By donating stock that has appreciated for more than a year, you are actually giving 20 percent more than if you sold the stock and then made a cash donation. The reason is simple: avoiding capital gains taxes. The maximum federal capital gains tax rate is 20 percent on long-term holdings. Given that the stock market has gained so much in the past year, you are likely to realize a taxable profit on the sale of assets you purchased in the past five years. But if you donate the stock directly to a charity, there’s no capital gains tax to pay. Plus, you are still eligible to deduct the full fair market value of the asset you donated from your income taxes, up to the overall amount allowed by the IRS. And remember that your appreciated assets can also include assets that are not publicly traded, like restricted stock or even bitcoin.
There are even more tax incentives for you this year! As shared earlier this year, legislation passed by Congress in reaction to Covid-19 provides an additional incentive to do so. One very important new and additional tax deduction that is now available is a deduction of up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions—uniquely available to people who take the standard deduction (for taxpayers who do not itemize their deductions). It is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income, and thereby reduce taxable income. Until Covid-19 and this new legislation, this additional deduction for making a charitable deduction was simply not available for those who do not itemize deductions. It provides a tax break now when one was not available before.
For those who do itemize tax deductions, the normal rules on charitable deductions still apply. In addition, under this new Covid-19 law individuals and corporations that itemize can deduct much greater amounts of their contributions. Individuals can elect to deduct donations up to 100% of their 2020 AGI (up from 60% previously). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.
You can donate stocks without headaches.
To obtain a deduction for the current tax year, the stock transfer must be completed by December 31. For electronic transfers from your brokerage account, the donation is recorded on the day it is received (not when you approve the transfer). Plan your year-end stock gifts as early as possible and have ongoing communications with your broker to ensure that the transfer takes place. It’s something to consider, and very easy to do!!! Just call Andrea Trapet, our stock broker at Edward Jones, 314-351-7194, and tell her that you would like to donate stock to our shul; Andrea will take it from there, guiding you along the way. They will notify us of your generous donation – (it is our policy to sell the stock right away, and they will send a check to the shul.)
Please contact Laura at the shul office to let her know of your transfer. Contact your own financial or tax advisor to see how you might benefit from this opportunity in 2020.