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Avoiding Taxes With Appreciated Assets

Today, we are talking about appreciated assets. These types of assets are great, because they provide increased investment value. The negative part is these assets include capital gains taxes when we sell (liquidate) them.

Let’s start with the basics – what are appreciated assets? These are typically investments like stocks, bonds and real estate that have increased (appreciated) in value. We all like our investments to grow so we can get more benefit from them. One of those benefits could be your charitable giving.

Most of us like to avoid taxes as much as possible. We also want to enjoy life, care for loved ones, and support the causes that are special to us. The growth of investments allows us to do much of that, except the part about taxes. The best way to manage some of your tax burden is to include steps that offer tax deductions. The most obvious deduction is a charitable gift.

Those people who wish to support their favorite charities, like their church or the KML Foundation, can donate an asset that has grown in value. Rather than giving cash as a donation, you can give an appreciated asset. This reduces your tax burden, doesn’t affect your daily cash flow and accomplishes your goal of supporting ministry.

Managing your investments is a serious matter, and we aren’t suggesting you act without talking with your professional advisors. This is, however, an option that might be a good topic of discussion when you meet with your financial advisor.

I also want to mention that people who don’t itemize on their tax return can still claim a charitable tax deduction this year. A married couple can deduct up to $600. That benefit might not be available in the coming years, so avoid those extra taxes by making sure you use the full charitable deduction this year.

If you would like to learn more about supporting the KML Foundation with an appreciated asset, contact me at 262-677-4051.

We look forward to coming to you with a whole new series of Table Talk blogs in 2022. Until then, have a blessed Advent and Christmas season as we celebrate our Savior’s birth.

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Crystal Perez
Crystal Perez
Dec 03, 2021

Thank you for this very insightful look into appreciated assets, I'm glad I know now how to help avoid some of the tax costs.

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