Minimizing Your Taxes and Managing Your Complex Affairs

Tax Tips, Finance Tips, Fun Events

Tips for Individuals, Businesses and Charities. Fun Events.

Giving Stock to Charities Avoids Capital Gains Tax


Besides giving cash to charities, have you considered giving securities?

One tax minimization strategy is to donate appreciated securities held long-term (over 1 year) as you can deduct the full fair market value and avoid capital gains tax on the appreciation.

This gives your favorite charities more than if you sold the stock and provided after-tax funds to the organization. If you do this, try to do it before Dec 28 as brokers get swamped and sometimes miss these transactions.

Securities held short-term are only deductible at the lower of their cost or the fair market value.

Never donate securities that declined in value as it’s best for you to sell and claim a tax loss. Giving to charity securities that declined in value will not allow you to deduct the loss.

If you are enjoying my tax and finance tips and would like to buy me a beverage

Richard Pon CPA, CFP