Closely Held Stock
When it is time to transfer business ownership – whether to create income for retirement or to pass on an inheritance, closely held stock owners have special opportunities to reduce taxes while creating a charitable fund through the Maine Community Foundation to support the causes and organizations that mean the most to them, now and in the future.
This is an opportunity for you to help support your community with a gift of your corporation's stock. Transferring shares of your corporation's stock to the Maine Community Foundation can provide the following benefits:
- The satisfaction of making a gift today that can invest in your community now and in the future
- An immediate charitable income tax deduction
- Bypass capital gains taxes on the gifted stock
- Avoid declaration of income and double-taxation of dividends
- Reduce estate taxes
- Allow the corporation to buy back the stock
HOW TO MAKE A GIFT OF CLOSELY HELD STOCK
A business owner who owns stock in a family business or corporation transfers shares of his or her stock to the Maine Community Foundation. MaineCF sells the donated stock for fair market value. As a result of this gift, the business owner becomes entitled to a charitable deduction for the value of the stock on his or her personal income tax return. Plus, he or she avoids the capital gains tax on the appreciation of the gifted stock. The proceeds from the sale of the gifted stock can be used to set up a donor-advised fund at MaineCF to support the causes and organizations that mean the most to the business owner now and in the future.
VARIATIONS OF THIS PLAN
Gift the stock to a Charitable Gift Annuity or Charitable Remainder Unitrust to receive a lifetime income.
Make a gift of stock prior to any plan of selling the company to receive a personal tax deduction and avoid capital gains taxes.
Create a strategy to transfer your corporation to your heirs.
Please contact us to discuss the most tax-efficient way to structure your stock gift.