Stock Appreciation

When to donate your stock …when it has appreciated (and you’ve owned it for over a year).  Just donate your appreciated stock to a nonprofit and get a full write off for the full value at the time of donation.  You won’t pay tax on the appreciation of the stock.  If you had sold the stock, and then donated the cash, you would get hit with capital gains taxes.

When NOT to donate your stock …when it has declined in value. Instead, sell it, take the loss on your tax return (which may possibly offset other ordinary income up to $3,000) and then donate the cash.  If you donate the stock after the value has declined, then you have lost the chance to deduct the loss on your tax return.

Now you know…

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