With more than half of all Americans now owning stock, it is not surprising that many of them are donating shares of stock to their church. As a result, it is important for church leaders and donors to be familiar with the tax rules that apply to stock donations. Unfamiliarity with these rules can result in additional taxes. This is the second article in a two-article series reviewing what donors and church leaders need to know. The first article appeared in the August 2001 edition of this newsletter, and addressed the following topics:
1. Why should donors consider donating stock to their church?
2. What about gifts of privately held stock?
3. What limitations apply to gifts of stock?
4. What about stock that has declined in value?
5. What about selling the stock and donating the proceeds?
This article will address four additional issues associated with gifts of stock.