Business Advisors

Weathering the Recession - Benefits of Donating Company Stock for Estate Planning Purposes

By Marisa Gentile
July 02, 2009

In light of the current economic environment, the time might be right for you to consider estate planning. While your business’s value might be less right now due to poor economic conditions, one positive is that it is a great opportunity for you to gift shares and move value from your estate. With the federal annual gift tax exclusion of $13,000 for gifts per person and $26,000 for joint gifts by spouse, you may be able to gift a greater number of shares. This means that the first $13,000 (or $26,000 for joint gifts) of gifts of an ownership interest made by a donor during the calendar year to each donee is excluded from the total amount of the donor’s taxable gifts. Individuals who are interested in gifting stock should have a stock valuation prepared to determine and support the stock’s fair market value. Please contact a member of the Business Advisory Services Group for assistance with stock valuations.

Schneider Downs provides accounting, tax and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA and Columbus, OH.