Joshua Husbands
NEW! The celebrated philanthropy of Warren Buffet has prompted much interest in contributing to charities. In this article series, learn about setting up a charitable foundation, donating company stock, and navigating the related issues of taxation and securities law. Part 1 emphasizes private foundations, direct stock gifts to charities and donor-advised funds, and the issues involved in transferring stock options or restricted stock.
Susan Daley
After you die, taxes may be owed on the value of your property. One pillar of estate planning is to transfer assets that are likely to appreciate in value, such as stock options, out of your control long before you die.
Christopher Cline
The charitable remainder trust (CRT) is a mainstay of estate planning. Although designed for charitable giving, CRTs can play a role in financial planning for your stock grants.
Joan Oleck
BusinessWeek
How do you donate stock, and what are the rules? What are the tax advantages of a donation? Amazingly, many people with stock options are not very sophisticated in managing their own finances.
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The tax treatment is the same as it is for donations of any stock to a qualified charity. When you have held the stock for more than one year...
It's similar to the tax treatment for any gifts of stock. You may make annual gifts to any number of recipient up to the specified annual amount without any tax impact. Financial advisors often tell clients with substantial stock holding to consider making...
Most stock plans do not permit this for stock options or restricted stock during your life (i.e., transferable only at death), or they allow it only...
As a general rule, the contribution of the stock options themselves to a CRT is rather...
The charitable market-value deduction is limited to the cost of shares that are not held for more than one year...
Yes. You may donate company stock to the charity and simultaneously...
Yes. The option exercise and the...
A disqualifying disposition occurs if you sell, transfer, exchange, gift, or donate the stock that you acquired without...
You can gift shares purchased from a qualified Section 423 ESPP after the holding requirements are satisfied without disqualifying consequences. However, you do not completely escape taxation...
Unlike with a stock sale, gifting ISO stock does not result in an AMT adjustment for the difference...
Yes, though the gift itself is not subject to Rule 144. However, recipients of shares from "affiliates" stand in the shoes of their donors...
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