Giving Appreciated Property
If you have non-cash property, such as stocks and mutual funds, that has appreciated in value and has been held more than one year, you may realize greater tax savings from giving such property than from giving an equivalent amount of cash. A gift of appreciated property bypasses capital gains tax that could be due if you sold the asset. You are also entitled to a charitable deduction based on the property’s current value, including the “paper profits” you have earned since you have owned it.
Giving Depreciated Property
If you have stock or other property that has decreased in value, you could save more in taxes by selling them and giving the proceeds. You may be able to claim a capital loss on your tax return and you can also deduct the cash proceeds you give as a charitable gift. The result can be tax deductions that amount to more than the current value of the asset.