What to do with appreciated propery

by Christopher L. Kelly, Esq.

Do you have some appreciated assets just lying around that you don’t know what to do with? Maybe I can help. I encounter many people who are holding onto valuable securities or real estate who are not really benefiting from the asset but are not willing to sell it because of the tax consequences of selling it. However, if that person has held the asset for more than a year and has charitable inclinations, he or she can donate this asset or property to his or her church, association, or other Baptist cause and incur no tax liability. While an individual will have to pay capital gains and the Medicare surtax (which would be cumulatively 23.8% this year) on the sale of this type of property, the entities I listed above do not have to pay it. Thus, you can actually get more funds into Kingdom work than you could yourself if you sold the property and donated the net proceeds after paying your taxes. Depending on your unique tax situation, you may be able to deduct a portion, if not all, of the value of the gift on your personal income tax return. It truly is a win-win for people who fit this scenario.

If you are a leader in the finance ministry of your church, and you are not sure how to accommodate these kinds of donations, please give the Foundation a call. We can help you directly with handling gifts of publicly-traded securities and can also advise you on how to manage other types of gifts, such as real property. And with year-end fast approaching, due to the time it may take to completely finalize a gift, now is the time to get started. This is a great way to support Kingdom work today! Please just give us a call if you have any questions.

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You can reach us via phone at (615) 371-2029 or fill out this form.

Please note that the advice offered in this article is not intended to be construed as tax, legal or accounting advice. This material has been prepared for general informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice for the reader. You should consult your own tax, legal and accounting advisors before engaging in any transaction.