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Politics : Middle East Politics -- Ignore unavailable to you. Want to Upgrade?

To: Elmer Flugum who wrote (5695)	1/30/2004 6:49:24 PM
From: Elmer Flugum	Read Replies (1) \| Respond to of 6945

Milking the Americans and Depleting the General Fund, Part II: magendavidadom.org Donating appreciated assets to Magen David Adom is easy "If you have enjoyed substantial increases in the value of your investments, a gift of stocks/bonds can yield very important tax savings. That's the good news...the bad news is the capital gains tax that you will owe when you sell your stock. Donating appreciated assets allows you to legally avoid all the capital gains tax on your investment, while earning a current year tax deduction on the asset's full value. Congress has passed very advantageous rules that apply to contributed investments such as stocks and bonds that have appreciated in value. You receive a full income tax deduction based upon the current market value AND you completely avoid ever paying capital gains tax on your donated investment. In addition, your charitable donation may also help you avoid estate taxes. Why is a gift of stock more advantageous? Charitable giving in the United States usually takes the form of cash or its equivalent. However, most Americans have the majority of their assets invested in stocks, bonds or real estate. But many people are not aware of the special tax advantages available for donations of appreciated assets, such as stocks, which have risen in value since purchased. The tax savings can be substantial and can often greatly increase the impact of your support and your write-off! A gift of stock versus cash Suppose you have decided to make a gift of $1,000 to your favorite charity. The difference between writing a check or contributing stock valued at $1,000 could yield hundreds of dollars in additional tax savings to you! If you are in the 40% tax bracket, your check would allow you to deduct $1,000 from your income, thereby saving you $400 in federal income taxes. Thus, your $1,000 contribution has a "real cost" of $600. Perhaps you also own stock currently valued at $1,000 that you purchased years ago at a cost of $200 (your cost basis). By donating the stock, you are still allowed the full valued deduction. Plus, you will avoid any capital gains tax on that stock donation. If you had sold the stock, you would owe tax on the "capital gain" - the $800 profit. The tax rate on capital gains is as much as 28%. You could owe the IRS 28% of the $800 gain for a total tax of $224. Therefore, the "real cost" of your gift of $1,000 in stocks is only $376 (the $1,000 value less $400 in income tax savings and $224 in capital gains tax savings)." Israeli teens prepare for humanitarian mission to India israel21c.org^l326 They should practice humanitarian aide in Palestine by leaving. If they were thinking about humanitarianism, there would be no Isra'El. len