Invest in Our Future

What Is Closely Held Stock?

A closely held corporation is a company that has a limited number of shareholders. Often, these companies will have only one shareholder, who is the owner of the company. Its stock differs from widely held stock, which is traded publicly more frequently and can be held by thousands, even millions of individual shareholders.

Using Closely Held Stock to Make a Charitable Gift

Do you own stock in a closely held business? You may be able to use that stock as a means to support our missions or another cause important to you. Different from owning stock in a publicly traded company, owning closely held stock requires an appraisal if the deduction claimed exceeds $10,000.

You may benefit from making a gift of closely held stock if you:

  • Own a majority of shares in a closely held corporation
  • Want to remove retained earnings from the corporation, without haven them taxed twice
  • Would like to avoid capital gains tax on the shares to donate to a nonprofit or charity such as Saint Leo University
  • Would like to avoid capital gains tax on the shares to donate to a nonprofit or charity such as Saint Leo University

See Why Giving Securities Makes Sense

By design, investment portfolios fluctuate through the years. If you opt to sell any investments that are worth more than what you originally paid for them, you must pay capital gains tax.

Consider another option to boost your personal finances: Use those securities to create a bright future for Saint Leo University. Take a look at the chart below to see how a direct gift of securities compares with making a cash gift or a gift of the proceeds from the sale of your stock.

Save More with a Gift of Securities

 Give $10,000 Cash to UsSell $10,000 in Appreciated Property and Give Cash to UsGive $10,000 in Appreciated Property Directly to Us
Fair market value of gift $10,000 $10,000 $10,000
Cost basis N/A $2,000 $2,000
Long-term capital gain N/A $8,000 $8,000
Long-term capital gains tax($8,000 x 15%) N/A ($1,200) due to IRS $1,200 eliminated
Income tax savings ($10,000 x 33%) $3,300 $3,300 $3,300
Total tax savings $3,300 $2,100 $4,500
Net cost of gift $6,700 $7,900 $5,500

 

Get the Most Out of Giving

Contact us if you would like to learn more about this type of gift. Together with your advisor, we can help you invest in our future and avoid market woes and tax consequences.

 

Next Steps

  1. Contact Stephen Kubasek, director of Planned Giving, at (352) 588-8355 or stephen.kubasek@saintleo.edu for additional information on giving personal property.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Saint Leo University in your plans, please use our legal name and federal tax ID.

Legal Name: Saint Leo University
Address: PO Box 6665 - MC 2227, 33701 State Road 52, Saint Leo, FL 33574
Federal Tax ID Number: Please contact us for our federal tax ID number.

 
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.