Financial Matters
December 2011
Ways to Help Yourself and Others

In our October Circuit Rider, we described a way to help yourself financially (fulfilling IRA distributions tax efficiently), which also benefits the Church as well, (by making all or part of them direct transfers to the Church).

We would like to continue this month by offering an additional idea for you to contemplate (which should be done before (tax) year end, if acted upon).  As previously mentioned, these ideas are meant to offer mechanisms by which one can achieve certain financial advantages, possible tax advantages, and help our Church at the same time.

Appreciated Stock – As you may be aware, if one purchases stock and subsequently sells it at a gain, one pays gains tax on the profit.  To be able to legally avoid paying capital gains tax, one can make a gift to a charity (our Church) of appreciated stock held outside any tax deferred accounts.  This makes the most sense in those cases where the stock has been held longer than 1 year (deemed long-term for income tax purposes), and which has a low original cost.  The Church can assist the current owner in having the stock’s registration changed to that of the Church, thus effectuating the gift.  Please advise the Church prior to initiating as we will need to provide you with the legal name of the Church and its tax id number, or the electronic transfer (wire) instructions.  The Church can do the paperwork and just have you sign.   The benefit is that you get a tax deduction for the full current market value of the shares at the time of the gift is complete, and neither you (nor the Church) have to be concerned about the long-term capital gains that would other wise result.  Making such a charitable gift “solves” a capital gains tax “problem”, and would allow you to fulfill a charitable intent without depleting your cash.

If you have questions, or would like to discuss this in further detail, please feel free to contact Pete B., Finance Chairman, Rich D., or the Church office.  Rest assured that any inquiries will be treated with tact and confidentiality.  As with anything of a financial nature, consult your tax advisor as well.