| By contributing long-term, appreciated securities, you can receive a double tax benefit.
Capital gains tax on the stock's appreciation (the difference between the original cost basis and its present fair market value) is completely avoided. What's more, you can deduct the fair market value of the donated equities, up to 30% of your adjusted gross income for the current tax year -- or carry it forward for up to five years.
For purposes of calculating the fair market value, we use the mean between the high and low trading price on the date your gift is made. Gifts of appreciated equities qualify for these deductions at their full market value if you have held them longer than 12 months.
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