Making donations to non-profit organizations is a great way to do good works in the community your dental practice serves. It can also be a huge tax advantage to small businesses – especially if you take advantage of one not so widely known option to double up on your tax benefits.
Donating appreciated stocks allows you a “double play” of sorts when it comes to tax advantages. You get to claim the appreciated value of the stocks you donate while claiming the tax benefit of that appreciated value without paying the taxes on the gains.
How is This Possible?
Tax deductions on charitable donations are equal to the fair market value of the donation. This means that when stocks are donated, the deduction businesses (or individuals, as the case may be) are able to claim for their taxes is the full value of the stock at current prices.
Combine that with the fact that donors do not have to recognize capital gains on donated properties that are investments, and you have the perfect pair for giving that gives back.
Other Benefits of Offering Stock as Gifts
Aside from the tax benefits, businesses and individuals alike, can appreciate other reasons for donating stocks as their giving. One primary consideration is that it preserves the organizations available cash to fill other needs.
Curious about what donating stocks can mean for your dental practice’s tax picture? Make sure you contact us to get more information as well as the pros and cons of this kind of gifting decision.