Find out the advantages of making a stock gift, how to value it, and how to do it.
Under current tax laws, the full fair market value of stocks and bonds - up to 30% of adjusted gross income this year with a five-year carryover for any "excess" - may be deducted. The extra benefit of making a gift of long-term appreciated stocks or bonds is that federal capital gains tax on the securities' unrealized total appreciation may be totally avoided. You are, in effect, allowed to use the "paper profits" in your investment to reduce the amount of income tax you would otherwise owe.
If your securities are transferred via DTC, the value of your gift is the value upon transfer to Cosse International Securities. Otherwise the value of your gift of securities is based upon the mean between the high and low quotations on the day your securities pass from your control. For example, on December 10, when you mail your certificate for 250 shares of ABC Corporation to Seattle Opera (or your broker transfers the securities into an account for Seattle Opera), the high is $21 and the low is $19. At the mean price of $20 per share, your gift is worth $5,000.
If your broker has the stock:
Contact your broker and determine the stock and the number of shares you would like to contribute.
Please contact Jessica Breitbarth at 206.676.5534 or email@example.com with your broker's name and telephone number, the name and number of shares you are donating, and the fund to which you are contributing.
If securities are held with your broker in "street name" form, he or she can transfer via DTC your securities directly to:
Cossé International Securities
For credit to account 011166771
In name of Seattle Opera
Attention: Pam Warren
Please ask your broker to put your name in the delivery instructions (last name first, in the event that the instructions do not get transmitted in their entirety.)
Cossé International Securities is located at 1301 Fifth Avenue, Suite 3024, Seattle, Washington 98101, telephone 206-624-6651.
If you have the stock
If you have the physical certificate, we can provide you with a sample letter of authorization (LOA) and a stock or bond power assignment to safeguard the delivery of your securities to Seattle Opera. For safety reasons, you do not want to endorse the certificate and mail it. When the certificate is endorsed, it is negotiable by whoever has possession. The stock or bond power assignment replaces the signature on the certificate. You should never send the certificate and the power assignment in the same envelope. Please contact Jessica Breitbarth at 206.676.5534 or firstname.lastname@example.org to obtain these forms.
As always, we urge you to contact your tax advisor about how these rules apply to you.