GIFT STOCKS TO LIFESTRIDERS AND SAVE
This year, donate your stock shares, instead of cash, and save money on your taxes
HERE IS A COMMON EXAMPLE:
- You have stock shares that you bought for $500 that are now are worth $5000
- You wish to give a $5000 gift to LifeStriders this year
- You have not met your charitable donation threshold for the year
CASE 1: DONATE $5000 of Stock to LifeStriders
If you were to give these stock shares to LifeStriders, you would get a tax deduction for the current value of the stock = $5000,
AND you would not pay any capital gains tax on the $4500 stock gain, that you gifted to LifeStriders
In this case, by donating stock instead of cash, you are saving you between $1125 and $1260 (with a capital gains tax rate between 25-28%)
CASE 2: DONATE $5000 of Cash to LifeStriders
If you were to give $5000 of cash to LifeStriders this year, instead of your stock, you would still get a tax deduction for the cash donation, but you still have to pay the capital gains tax of $1125 -$1260.
Either way - LifeStriders will be thankful and gets the same $5000 of value from your donation, but in CASE 1, you will save between $1125 and $1260 if you donate your shares instead of cash.
It's WIN WIN for you, and LifeStriders.