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Megan C
Megan C , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16539
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I belong to a non-profit fraternal organization that would

Resolved Question:

I belong to a non-profit fraternal organization that would like to add an elevator to its meeting place. I would like to help them but in order to do that I would have to sell some stock, pay capital gains tax on the sale and then write them a check. Is it possible to simply transfer stock to them and avoid the tax. They are a non-profit but not a charity and I am not looking for a charitable deduction, just a way to help them without incurring capital gains taxes.
Submitted: 3 years ago.
Category: Finance
Expert:  Megan C replied 3 years ago.

MyVirtualCPA :

Thank you for your question, and thanks for using JustAnswer.com. You can definitely gift the stock to the organization, but if they are not considered a charity (501(c)(3) or similar) then you cannot deduct the transaction from your tax return

MyVirtualCPA :

The entity will inherit your basis in the stock. You will avoid the tax on the sale, but you will lose the benefit of a deduction.

MyVirtualCPA :

The non profit would then deal with selling the stock.

MyVirtualCPA :

Non profits do not have to pay capital gains tax, so they probably won't mind at all to take your securities directly.

MyVirtualCPA :

Is there anything else that you need assistance with?

MyVirtualCPA :

If not, please rate my response "Excellent" so that I may receive credit for assisting you today

Megan C and 2 other Finance Specialists are ready to help you
Expert:  Megan C replied 3 years ago.
Thank you for your positive rating. Please come back and visit MyVirtualCPA any time you have a question that needs answered. It was a pleasure working with you today. Thanks again!