A Faithful Steward and a Fruitful Manager

James Petty

January 1st, 2019 @ 8:56 am

People often ask me, “How can I utilize my stock to build the Kingdom of God?” They are focused not only on building temporary earthly wealth, but also on storing up for themselves eternal treasures in heaven. Such a question reveals a sincere desire to be a faithful steward. This is also a timely question, because tax laws and IRS regulations are becoming increasingly complex. So, here are three great ways your stock can advance God’s Kingdom.

Option 1
The first option is perhaps the most obvious—you can simply sell your stock and give the proceeds to AFM. The downside to this option is that you will be liable for capital gains tax if the stock has appreciated in value.

Option 2
The second option is to arrange for a direct stock transfer to AFM. This process can take three to four weeks, and I will guide you step by step. The advantage of this option is that you eliminate the capital gains tax on any appreciation.

Option 3
The final option is perhaps the smartest route if you wish to minimize your capital gains tax liability and keep your stock portfolio. In this final option, you connect with me, and I will walk you through the stock transfer process. Simultaneously, on the same day of the stock transfer, you purchase the same amount of the stock from your cash reserves, leaving you with the same stock portfolio, but now with a higher purchase price. With the higher purchase price, you are protected from any capital gains tax on the appreciation you have enjoyed from the original purchase to the time of the donation.
For example, imagine that you purchased a stock for $100. You now transfer it to AFM with a current value of $500. You will pay no capital gains tax on the $400 appreciation in value. If you then, on the same day as the transfer, purchase the exact same share at the new purchase price of $500, when you decide to sell the stock at some future date, let’s say for $1,000, your capital gains tax will be calculated only based on the additional $500 of appreciation, not on the total $900 of appreciation since your first, original purchase.
Why not call me to discuss which option works best for you? You can be both a faithful steward and a fruitful manager!