![]() You can give your portfolio a health checkĮven with a good diet and regular exercise, your health can get out of balance. And remember that your appreciated assets can also include assets that are not publicly traded, like restricted stock or bitcoin. Plus, you are still eligible to deduct the full fair-market value of the asset you donated from your income taxes, up to the overall amount allowed by the IRS. But if you donate the stock directly to a charity, there’s no capital gains tax to pay. Given that the Dow Jones Industrial Average rose from nearly 18,000 at the end of March 2016 to nearly 34,000 at the end of March 2021, you are likely to realize a taxable profit on the sale of assets you purchased in the past five years. The maximum federal capital gains tax rate is 20 percent on long-term holdings. The reason is simple: avoiding capital gains taxes. Here are four reasons you should give stock donation a try: You can give moreīy donating stock that has appreciated for more than a year, you are actually giving 20 percent more than if you sold the stock and then made a cash donation. ![]() According to a 2016 study by Fidelity Charitable, 80 percent of donors own appreciated assets, such as stocks, mutual funds or bonds, but only 21 percent of those donors have contributed these types of assets to charity. Yet, it is often not well understood or widely used. Why? Because donating stock directly to charity is one of the most tax-smart ways to give. If you also give to charity, these scenarios should encourage you to review your investment portfolio with a donation strategy in mind. Maybe you just want to refocus on other investment categories. ![]() Maybe a surge in value of one of your holdings has thrown your portfolio off balance. Maybe your stocks have appreciated greatly since you purchased them.
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