If you own appreciated Anheuser-Busch stock, the recent decision by the Anheuser-Busch Board of Directors to sell the company to InBev may have you thinking about your tax planning. Many owners of Anheuser-Busch stock may have considerable capital gain when the purchase by InBev is completed. Giving Opportunity…Advantages to You and to Washington University You may want to consider using your Anheuser-Busch stock to make a gift to Washington University. When gifts of appreciated stock are made, you not only receive a charitable income tax deduction but you also usually avoid capital gain on the appreciation. Timing Is Critical However, when a company is in the process of being acquired by another company, the timing of the gift of the stock is critical. The stockholder cannot avoid being taxed on the gain if the gift of stock of the company being purchased is made after all significant contingencies have been satisfied, such as the final shareholders vote which approves the sale. Our legal counsel has researched the pending acquisition by InBev and whether stockholders of Anheuser-Busch shares can still avoid the gain at the time the shares are gifted. Our counsel suggests it is probably not too late to make a gift of the shares and that the controlling date should be the shareholder vote. However, you should not rely on this for your legal and tax advice. Please be sure to consult with your own counsel before proceeding. Giving Options You can use your stock to make an outright gift to, for example, fulfill a pledge, provide annual support, or establish an endowed fund. You may also use your stock to fund a charitable life income plan like a charitable gift annuity or charitable trust. Through a charitable life income plan, you will receive income for life and tax benefits. Click on the Planned Gifts Calculator button below to learn more about life income plans and the financial benefits you may receive.
How We Can Be of Assistance If you wish to discuss a gift of Anheuser-Busch or other appreciated stock, you may contact a member of our Planned Giving staff. We would be happy to answer any questions that you or your advisors might have regarding this opportunity. Planned Giving Office 1-314-935-5373 1-800-835-3503 (toll free) plannedgiving@wustl.edu Please remember to consult your tax and legal advisors before making a gift. This is especially important in this situation because the purchase agreement and final approval of the stockholders will affect the timing of your gift. |
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