Like many of us over the years, you may have accumulated stock that has significantly appreciated in value. You have a concern about selling the stock, as there will be a minimum 20% capital gains tax due on the difference between your original cost basis and the fair market value of the stock at the time you sell it. If you are interested in supporting the Department of Mechanical Engineering, why not think about donating some of your appreciated stock to MSU. That way, you can make a significant gift plus avoid the lump sum capital gains tax liability. Check out our Guide To Giving!
Current tax laws provide an incentive for you to make a charitable gift of stock at a remarkably low tax cost. The tax savings are achieved in two ways. First of all, you pay no capital gains upon the transfer of stock to the College. Secondly, you may take a charitable income tax deduction for the full fair market value of the stock on the date of transferring (gifting) the stock to Michigan State University.