Donating public company stock just became more rewarding.
If you make donations, think about donating public company stock.
Why?
Donating public company stock results in no tax on the capital gain.
The after-tax cost of the donation can now be as low as 15%.
The donation tax credit you get is worth about 50% of what you donate. Not having a capital gain to recognize is worth another 35%. Do the math.
But alternate minimum tax may come into play, if the donation is large.
Which stock do you donate?
The stock with the highest percentage appreciation.
If you have a very large gain on a stock (say 200% or more), don’t sell all of it. Keep some shares for donations.
How do corporate donations work and what is the impact on CDA?
Are personal donations better than corporate donations?
Find out when we examine this subject in detail:
Each year, we put on a Tax Seminar Series with important updates and tax planning ideas. It has been attended by thousands of CPAs over the years. Most repeat year after year.
We will give a full analysis of donation strategies. It will be rewarding.
Find out how you can register and learn new tax planning ideas like those above for capital gains.