Are you a shareholder confronting a giant tax bill because of Medtronic's international move? Charities are turning lemons into lemonade, soliciting stock donations.
"The pain felt by many longtime Medtronic Inc. shareholders is turning into a big gain for their favorite charities. Longtime holders of stock in Fridley’s medical technology giant were stunned to learn earlier this year that they’ll face potentially large tax bills when Medtronic moves its legal headquarters to Ireland, which is expected to happen early next year. ...Tax planners and local charities say many longtime holders of stock have decided to offset or even wipe out their Medtronic tax liabilities by donating some or all of their shares to charity. Depending on when and how such donations are made, stock donations can create income tax deductions and reduce or eliminate capital-gains taxes, though individual situations vary widely. And the charities have figured it out. Some are directly soliciting donations of Medtronic stock, which the company encouraged last week by announcing it would match up to $1 million in stock donations to Greater Twin Cities United Way." -- Joe Carlson, the Minneapolis Star-Tribune