Category Archives: Gifting

A different tax saving strategy

Tax loss harvesting allows people to reduce their taxable income by selling securities that have gone down in value. Capital losses can be used to offset ordinary income or to offset realized capital gains.

But if an individual dies with a capital loss that they have not used, the person who inherits these securities may not be able to use these losses.  There is a way to use these capital losses if it’s done right.

For example, If Joe buys a stock for $200 and it declines to $100 and then gives it to daughter Sue, her cost basis is $100 (the value when he gifts the stock). If she then sells it for $100 she cannot claim a loss.

However, if Joe gave the stock to wife Mary who then sells it for $100 she can claim a loss of $100 (the original cost $200 – $100 = $100 loss).

This is a quirk written into the tax code -Section 1015(e) – specifically designed for gifting of depreciated assets to a spouse.

This example only works if the assets are gifted before death. If Fred dies with the depreciated stock the tax cost basis is its value as of the date of death.

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Six Charitable Moves to Consider Before Year-End



If you itemize your taxes:



If you are over age 70 ½:


Aunt Jennie’s Talents

Image result for image of older woman giving money

The Parable of the Talents is known to everyone who ever attended Sunday school.  A man prepares for a long journey by entrusting three servants with heavy bags of silver (talents) while he is gone.  In those days coins were weighed and a “talent” was about 75 pounds.  He gave 10 talents to one, five to the second and one talent to the third.  The first two servants invested the silver.  The third, being fearful. dug a hole and hid the money for safekeeping.  When the man returned, the first two gave the man twice what had been entrusted to them.  But the third just gave the man his money back.  For this poor stewardship the third servant was cast out.

I was reminded of this story when a lady came to us after receiving an inheritance from her Aunt Jennie.  After being grateful for her good fortune she wondered what to do.  Banks today are paying a pittance on deposits, so putting it in the bank was not all that much different from digging a hole to hide the money from thieves.  She wanted to be a good steward of her inheritance.

She wanted to honor Aunt Jennie by taking care of her money wisely and not squander it.  Aunt Jennie worked hard for her company, spent a lifetime being frugal and made wise investments.  My future client knew her own limitations. She was not an experienced investor.  She had to decide if she wanted to spend her time learning investing from the ground up.  With all the information out there, which expert or school of thought do you listen to?  Did she want to spend her time reading fine print, studying balance sheets or did she want to continue doing those things she enjoyed by finding an experienced professional she could trust to shepherd the money for her.

She chose us because of our caring professionalism.  We listened carefully to her objectives.  We explained the risks and rewards involved in the investing process.  We explained our investment process with the key focus on risk control and wide diversification.  We believe in wise investing, steady growth, and the assurance that your money will keep working for you. With over 30 years’ experience we have weathered all kinds of markets successfully.  Our knowledge and experience allows our clients to focus on those things they enjoy.  They know that their investments will be there for as long as they need them and beyond to help their children and grandchildren.

Aunt Jennie’s talents have grown and our client is happy.  Aunt Jennie would be proud.

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Even the “rich” can’t afford retirement.

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Do you have a Dusty Trust?







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The Benefits of Giving Appreciated Stock to Your Church

Most people give money to their church by dropping an envelope in the collection plate each week as it passes them. Bless you for your generosity.

But there may be an even better way of giving that allows you to give even more without costing you more: giving appreciated stock. Appreciated stock is stock that has gone up in value from the time you bought it.

Here is an example of how this works to everyone’s benefit:

Supposed you wanted to give your church $2500. You have stock in the XYZ Company that’s worth $2500 today, but you only paid $500 for it years ago. If you sold those shares today the federal government is owed $300 in taxes ($2000 gain X 15% = $300).   After you pay the tax, the church would only get $2200 ($2500 – $300 = $2200). But if you gave the stock directly to the church, the church could sell it and – because the church is tax exempt – the church would get the entire $2500.

In this example, the cost of your gift is $500, the church gets $2500, and you get a $2500 charitable deduction.

This is especially useful if you have stock whose original cost you don’t know, such as gifts from parents, or shares that you bought many years ago without keeping a record.   Giving the stock to the church solves the tax cost problem and may allow you to give more than giving cash.

It’s easy to do. Just ask the church for the name of the investment firm they use and the account number. Then instruct your custodian to send shares from your account to the church account. It’s that simple.

Finally, be sure to tell your pastor what stock you are gifting and the number of shares. Without this information your church will not know who made the gift and can’t provide you with a confirming letter you can use to take a tax deduction.

For more information, call Arie Korving or Stephen Korving at Korving & Company.

Phone (757)-638-5490 or go to our website:

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