MCFThe Montana Community Foundation: all about Montana's future
How To Give to The Montana Community Foundation

GO
   

How To Give

Gifts of Grain or Livestock

Farmers or ranchers looking to minimize their tax liability can donate crops or livestock to the Montana Community Foundation, make an impact on their community with a significant gift, and reduce their taxable income.

When a farmer or rancher transfers legal ownership of commodity to a charity before it is sold, the producer will not have taxable income from a sale. The Foundation can make arrangements to sell the livestock or grain, and the producer can still deduct production costs on their income taxes. Tax savings may be realized on federal income tax, state income tax and self-employment tax, depending on the farmer or rancher’s specific circumstances. As with any charitable gift, it’s best to consult your tax advisor and the charity before making the gift.

For example, assume a farmer generally gives $5,000 annually to his local community foundation and is interested in gifting that amount in commodities in 2012. The farmer gives the community foundation 1,000 bushels of wheat when the market price is $5.00 per bushel. The farmer does not claim a charitable deduction for the market value of his donated wheat. Rather, he receives tax benefit by reducing his total amount of taxable income by gifting the commodity to the Foundation and deducting the production expenses.

Steps to Make a Gift of Grain

Steps to Maike a Gift of Livestock

 

 

 

BACK TO TOP

The Montana Community Foundation | 1 N. Last Chance Gulch, Suite 1 | Helena, MT 59601
Phone: (406) 443-8313 | Email Us
© 2014 Montana Community Foundation