GIFT STOCKS TO LIFESTRIDERS AND SAVE
This year, donate your stock shares, instead of cash, and save money on your taxes
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With a bull market like this one, you may likely be holding stocks with values that have grown over time (maybe even doubled, tripled or more). You love seeing this appreciation, but also know that you will need to pay taxes on the gains to realize the cash value.
What if I told you that you don't have to pay the capital gains tax on these shares? Would that interest you? If you are thinking of donating to LifeStriders this year and you own shares of publicly traded stock(s), whose value has grown over time, consider gifting the stock shares to LifeStriders instead of the cash, and save money on your taxes. This gift strategy gives you the advantage of not being taxed on the capital gains that the stock has made for you, while still being able to take a charitable deduction for the full market value of the stock, at the time of the gift, and LifeStriders still receives the full market value for the stock gift. Its a WIN WIN! |
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.
