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Hamilton Plans Newsletters

Fall 2008

Saving Capital Gains Tax

Depending on who is elected this fall, the capital gains tax rate may increase. You have an opportunity to make investment shifts now at today's known rate of 15 percent. In addition, charitable contributions may help you reduce the capital gains tax that otherwise would be due.
 

Objective:

You wish to diversify or rebalance your portfolio in a tax-wise way.

Planning Pointer:

Consider transferring some appreciated stock to a charitable remainder unitrust that provides exceptional diversification and management by the Trustees of Hamilton College. No capital gains tax will be paid by you on the initial transfer or by the tax exempt trust when the shares are sold. The income tax deduction may offset the tax due on the sale of securities outside the trust.
 

Objective:

You decide to sell an appreciated stock while limiting capital gains tax.

Planning Pointer:

Contribute some shares to Hamilton and sell some shares in your account. By doing so, you will avoid capital gains tax on the contributed securities and the income tax charitable contribution deduction generated by the gift helps offset the tax due on the recognized gain.