Gifts of Appreciated Property

For tax purposes, property that has appreciated in value is often a better asset than cash for you to give to the Algonquin. Such assets Include:

• Securities (stocks and bonds)
• Closely held company stock
• Tangible personal property (jewelry, works of art, musical instruments and other valuable assets)

You may give the property to the Algonquin outright, or indirectly through a life-income arrangement that enables you to make your gift and receive an income for life. A gift of appreciated property is often an intelligent alternative to selling the asset yourself and paying tax on the gain. In effect, the capital gains tax savings allows you to make a generous gift to the Algonquin at lower “cost” than if you gave cash.

Your property gifts to the Algonquin are deductible on your income tax return. The amount of your deduction varies depending on the kind of property you contribute. A direct gift to the Algonquin is often deductible at the asset's full fair market value, depending on the type of asset given. There are significant exceptions for gifts of tangible personal property, depending on whether the Algonquin is able to use these assets.

Indirect gifts through life income plans are also often partially deductible, but additional exceptions apply under the tax laws. It is important to talk with your tax advisors about the tax consequences of any gift you are considering.