Monday, April 30, 2012
Donating appreciated stock can double tax benefits - CBS News
Donating appreciated stock can double tax benefits - CBS News: For example, let's say you plan to donate $20,000 to a charitable organization. You also own shares of stock or a mutual fund that you bought for $10,000 last April and today it is worth $20,000. If you sold the $20,000 stock instead of donating it, you would pay capital gains tax on the $10,000 gain in value. The tax rate for long-term capital gains is 15 percent. Instead, if you donated the shares, you would not realize the gain. The tax savings for donating rather than selling the stock would be $1,500 (10,000 x 15%).