In recent years more and more of us no longer itemize our income tax deductions. But if you do not itemize, then you cannot take full advantage of the deduction for charitable contributions.

Good news! You can still save taxes with your well-planned charitable contributions. If you have investments that have increased in value, contributing those shares to MUSC Foundation can save on taxes even if you do not itemize. When you sell an investment for more than you paid for it, your profit is “capital gain” which is subject to a tax of 15% (for most taxpayers). However, if you give your shares to MUSC Foundation instead you will pay no tax on the capital gain.

For example, if you own stocks that you purchased years ago for $2,000 and sell them for $10,000, you will have $8,000 of capital gain. Your sale triggers $1,200 in capital gains tax (potentially more). By giving those shares to MUSC Foundation instead you would owe no tax at all. You’ll still get an income tax charitable deduction for the $10,000 value of the stock given to MUSC Foundation, which you can use if you itemize. However, even if you do not itemize, you will still avoid the capital gains tax.

We welcome the opportunity to collaborate with you and your advisor to find ways for you to support MUSC with maximum tax efficiency. Please contact Dana Taylor to learn more.