DOUBLE BENEFIT WHEN GIVING STOCK A couple decided to buy stock in their favorite store. Over the years, that stock increased in value. It now is worth much more than they paif for it ($10,000), now worth almost $50,000. They were thinking of selling, and writing a check for $5,000 (or 10% of the stock value) to a charitable organization to reduce their taxes. They talked to their CPA and he mentioned that they could probably give about twice as much with almost the same cost if they gave stock rather than writing a check. After talking to their tax advisor, they discovered that if they gave $10,000 of stock they would receive two benefits. By giving the stock instead of writing a check, they get their income tax deduction. Plus, they also save the capital gains tax on the $10,000 worth of stock. Meaning: By giving the $10,000 of stock they saved the capital gains tax, and then the deduction of that amount offsets a large portion of the tax on the $40,000 worth of stock that they actually sell. They are very pleased with the "double benefit" from giving the stock to their favorite charity. PLEASE HELP THE LAS VEGAS RAILROAD SOCIETY Please talk to your investment advisor if you have stock and/or tax questions. Should you consider donating to a charitable organization, please do consider the Las Vegas Railroad Society as you favorite charitable organization; you are indirectly helping all local children of today and of tomorrow!