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Long Term & Short Term
Making an irrevocable gift to charity may allow you some level of income tax charitable deduction. Gifts to St. Lawrence of cash (e.g. check, credit card) are deductible at the full amount of your gift, up to 50% of your Adjusted Gross Income (AGI) when you file your income taxes.
For gifts to St. Lawrence of securities or property, however, the nature of that deduction depends on whether the property is "held" "long-term" or "short-term". This simply refers to how long you have owned, ("held"), the property.
Long-term
Holding long-term property means that you have owned it for at least 12 months and 1 day. Giving long term property to St. Lawrence may allow you to deduct the full fair market value of that property up to 30% of your Adjusted Gross Income.
Short-term
Giving short-term property (you have owned it for less than 12 months and 1 day) allows a deduction of the cost basis (what you originally paid for it), up to 50% of your AGI. This could be advantageous if the market value is still close to the cost basis.
Whether short-term or long-term, if your total gifts for any one year exceed the 30% or 50% limit, you may "carryover" any remaining balance to deduct on your income taxes for up to 5 additional years.
Note: It gets even more complicated than this, so it is important that you consult your financial advisers and St. Lawrence before you make your gift.
This web page does not provide legal or financial advice, nor is it intended as a comprehensive review of the topic. You should consult your attorney, tax advisor and St. Lawrence before making or planning your gift.
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