We continue to make advances technologically! As most of you are aware, we performed a direct bore from the PLC to the church over the summer and have connected the two buildings with fiber optic cable. The PLC and CFC were previously connected with fiber several years ago. We are now making another step in connectivity by connecting the entire campus to a live fiber feed. Believe it or not, there is an existing fiber “run” down 111th Avenue North which we will be able to connect. By connecting the entire campus to fiber, our options moving forward are greatly enhanced. We look forward to our parishioners experiencing the fruits of our labor in the near future.
Do you remember my comments about the adjacent tennis courts being reconditioned several weeks ago? I mentioned how great they look with the caveat that Collier County should have addressed the drainage before engaging in a contract to resurface the existing courts. See the results of a three inch rain on already saturated ground.
The following information could be valuable to our parishioners, especially since many of you have actually recognized substantial gains in the market recently.
If you are planning to make a relatively substantial donation this year to a non-profit organization such as St. John the Evangelist or the Diocese of Venice, look through your portfolio before you write a check.
Since you will be making a donation to a qualified charitable organization and donations may be deducted on your federal income tax return as an itemized deduction, you should consider donating appreciated stock from your investment portfolio instead of cash. This works best for folks whose marginal tax bracket is 15 percent or higher and who claim itemized deductions.
Given the run-up in the stock market over the past 12 months and beyond, many investors who bought individual stocks are very likely to own shares that have substantial unrealized gains. And some of those shares were bought just about 12 months ago.
The tax benefits — which include deducting the amount of the charitable donation AND escaping the unrealized gains on the donated stock – come from the fact that the deduction for a donation of property to charity is equal to the property’s current fair market value. And when the donated property is an investment, the donor does not have to recognize the capital gain. These rules create a “double play” of tax benefits: a charitable deduction AND avoiding tax on the unrealized capital gains of the donated property.
For example, let’s say you bought stock for $10,000 last September and today it is worth $20,000. You plan to donate the entire amount to a charitable organization.
If you sold the $20,000 stock instead of donating it, you would pay capital gains tax on the $10,000 gain in value. The tax rate for long-term capital gains is 15 percent (20% for those with very high income.) Therefore, the tax savings for donating rather than selling the stock would be $1,500 (10,000 x 15%).
In addition, you can claim a deduction of the market value of the donated shares — the full $20,000 — as a charitable donation deduction. If you are in the 25 percent federal tax bracket, this could generate another $5,000 (20,000 x 25%) in tax savings. This brings your total tax savings to $6,500. If you are in a higher tax bracket, your donation deduction will be even more. Also consider this: you are giving a gift that is two times what it originally cost you.
So as you can see your tax benefits from making a donation of appreciated stock versus giving cash can be substantial. And St. John the Evangelist/Diocese of Venice will be just as happy to receive the stock versus cash.
There will be no Scott’s Corner this coming week due to early deadlines. See you again on the 21st and 22nd of September.
In His work together,
Scott Schlossberg, MBA
General Manager