Use only the shares with long-term gains.We have some short and long term gains in our taxable (not retirement) accounts and are in the position to make some charitable contributions. What are the mechanics of making one time donations of such holdings compared to selling what we own, paying taxes, and then making the contributions? Are the charitable deductions the same?
If you donate a share with short-term gains, you only get a tax deduction for your basis (which is usually the purchase price). If you donate a share with long-term gains, you get a tax deduction for the full value, and neither you nor the charity pays any tax on the capital gains.
(If you have shares with losses, do not donate them, as the capital loss is of no benefit to the charity. Sell them and take the capital loss, then either donate the cash or donate an equal amount from shares with long-term gains and invest the cash in something else.)
Statistics: Posted by grabiner — Sun Sep 15, 2024 7:01 pm — Replies 19 — Views 702
