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People also ask
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What happens when you gift stock to someone?
Gifting stock can be more valuable than cash and a way to pass down wealth or give to charities. Stock gifts valued at less than $18,000 remove tax liability from the gifter. The recipient may be subject to capital gains tax, though the rate depends on their taxable income.
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How do I report a gift of appreciated stock?
Report the stock donation when you file your taxes. When you file your federal taxes, you must report your stock donation on IRS Form 8283, which is the form for non-cash charitable contributions.
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How do you accept gifts of stock?
Ask your donor to contact their broker and obtain a stock donation transfer form. When you receive your donor's contact information, immediately send them transfer instructions or include these on the page with your DTC information.
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How to acknowledge stock gifts?
A gift of stock is a donation of property. If a charity receives a gift of publicly traded stock, the charity should send the donor an acknowledgement letter that describes the stock (i.e., “Thank you for your donation of 100 shares of XYZ Corporation”) but does not place a monetary value on the shares.
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Are gifts of stock tax deductible?
Why would I donate stock instead of cash? Donating securities that have been held for a year or more offers the potential for a double tax benefit—a full fair market value tax deduction and elimination of capital gains taxes.
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