Planning

Tax-Savvy Charitable Giving with Appreciated Stock

Lots of people like to make charitable donations in December. Typically people make their charitable donations by writing a few checks and dropping them in the mail. Which works. 

But did you know there is a tax-savvier way to make your charitable donations?

If you have a taxable investment account with stocks, ETFs or mutual funds that have increased in value (appreciated securities) you can actually donate those directly to your favorite charity. So instead of selling those appreciated securities and paying a capital gains tax you could simply gift away the capital gain.

If you have held those appreciated securities for at least one year you can gift away the capital gain to your favorite charity. If the charity is a 501(c)3 organization they won't owe any taxes on the capital gain. You can replace that gifted security with cash and ...well it's a great way to rebalance your portfolio while managing your taxes and benefiting your favorite charity at the same time.

Win-Win-Win!

While this strategy isn't complicated, it does take a bit of time so don't wait until the last minute. Find out the ins and outs of this strategy in this article I wrote for Richmond Family Magazine!

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