Investment Strategy – Another Way To Donate Money

Donating appreciated stock to charity is a very common tax tool for the wealthy. When you donate stock that you have held for more than a year (through direct transfer of the stock to the charity) you get a tax deduction for the fair market value of the stock, on the date of donation. In general, my tax clients contribute aggressively to retirement and usually do not carry much in investments outside of their tax-deferred accounts. The very wealthy, on the other hand, tend to have more money, income, and investments than they know what to do with. Rather than selling investments and generating more capital gains, and generating more cash that they do not need, they often donate the stock


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