Giving personal property to The Sierra Fund is an excellent way to receive a tax deduction and help to protect the forests and rivers of the Sierra region.
Types of Personal Property
- Tangible
can include items such as: artwork, antiques, jewelry. - Intangible
can include items such as: copyrights, patents, contracts, trademarks, royalties.
Advantages
- Income Tax Savings
If the use of the gift will be related to our mission, you can take an immediate income tax charitable deduction equal to the full fair market value on the date it was given. If the use of the gift is unrelated to our mission, your deduction is restricted to the asset’s cost basis or fair market value, whichever is less. You may claim the deduction (up to 30 percent of your adjusted gross income) in the year you make the gift. If you cannot take the entire deduction in the first year, there is a 5-year carry-over for any excess. - Capital Gain Tax Savings
If the IRS considers the property to be long-term (owned for one year and a day) capital gain property and it is mission related, you can avoid capital gain tax, which you would have incurred had you sold the property. - Avoidance of Gift and Estate Taxes
Both tangible and intangible property are removed from your estate and are no longer subject to these taxes.
How It Works
John donated a truck to The Sierra Fund. The Fund will use the truck to assist existing conservation organizations with on-going stewardship activities. Therefore, the property is considered to be mission related and John receives an income tax deduction for the full fair market value.
Kelly gave The Sierra Fund a pair of diamond earings. Since we cannot use them to further our mission they were sold and the proceeds were used to help our conservation efforts. Kelly received an income tax charitable deduction for the cost basis of the earrings.
For more information on gifts of personal property, please e-mail info@sierrafund.org or call (530) 265-8454.
