Supporting the Foundation with a Stock Donation
Did you know that there is a way you can donate to the Covington Educational Foundation AND potentially save money on your taxes? Donating shares of stock that have increased in value can often help you get the most bang for your buck when it comes to charitable contributions.
The tax advantage comes from your ability to deduct the full fair market value of the stock while at the same time being able to avoid paying any capital gains tax on the appreciation, or increase in value, of the stock! This gifting method is best utilized for appreciated equities that have been owned for longer than a year, as they are considered long term property. Otherwise, your deduction may be limited to the basis of the appreciated stock rather than the full market value.
Deductions of appreciated property, such as this, are generally limited to 30% of a taxpayer's adjusted gross income. However, amounts in excess of this threshold can be carried forward for up to 5 subsequent years as deductible charitable contributions.
Please contact Treasurer Pam Conner for more information.