Outright Gift of Personal Property
Gifts of personal property can be either tangible or intangible (i.e., jewelry, furniture, coin collections, stocks, bonds, etc.).
What is personal property?
Personal property can be either tangible or intangible. Tangible property includes physical personal objects such as works of art, security certificates, furniture, equipment, or animals. Intangibles include stocks, bonds, partnership interests, contract rights, split and undivided interests in property, royalties in some states, and leasehold interests in mineral or oil and gas property.
What are some benefits of making a gift of personal property?
Outright gifts of personal property to Oxfam America may offer tax savings to the donor that are more appealing and less cumbersome than finding a willing buyer or continuing to maintain the property.
Gifts of tangible personal property (books, equipment, etc.) to Oxfam America for use in its charitable activity is deductible at its fair market value up to a maximum amount of 30 percent of a donor's adjusted gross income (AGI).
Tangible personal property not used for a charitable purpose (e.g. held for resale) by Oxfam America is deductible at its cost basis or fair market value, whichever is lower, up to a maximum amount of 50 percent of a donor's AGI.
Any surplus charitable deduction not used in the year of the gift can be carried over and used in the subsequent 5 years.
What are some details and tax issues regarding gifts of personal property?
Gifts of stocks, bonds, and/or mutual fund shares (all long-term capital gain property held more than one year) are deductible at fair market value up to 30 percent of adjusted gross income.
Securities held short term (less than one year) are deductible at cost, up to 50 percent of adjusted gross income.
A donor must file IRS Form 8283 with his/her tax return and obtain an independent appraisal to substantiate the charitable deduction for non-cash gifts (other than publicly traded securities) in excess of $5,000 in value, or $10,000 for closely held stock.
Contact our gift planning specialist for more information.