If you are someone who typically donates money to charity and you have a taxable investing account with gains, you should consider making share donations from your account rather than in cash. While both cash donations and share donations (held long term) have the same tax deductible, donating appreciated shares has an additional tax benefit: avoiding the capital gains tax on the sale of your securities. Whether you sell today or sell in the future, you’ll typically pay tax on those gains when you sell. Donating shares, and replacing the shares with an additional cash investment, results in a lower embedded tax liability, while keeping your investing goals on track.
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- Can my client donate to charity with shares from goals using any portfolio strategy?
- Can my clients donate shares from a Tax-Coordinated Portfolio?
- Can my clients donate shares from their Betterment IRA or 401(k)?
- How can I explain to my clients why they should consider donating shares to charity?
- How can my clients donate shares?
- How do my clients get a receipt for their charitable donation?
- How do we calculate the eligible balance for making a donation?
- How does my client request a new charity be added?
- How will donating shares to charity through my clients’ accounts affect their tax forms?
- When is the deadline for making a charitable contribution?