Additional Donations Can Save on Taxes
Are you still considering a year-end donation to your favorite charity? If so, consider donating publically traded appreciated stock held more than a year to receive a double benefit on your taxes. First, you will get a charitable donation on your personal taxes equal to the fair market of the stock. Secondly, you will avoid paying capital gains tax on the net appreciation of the long term stock by making the donation to a public charity. If you are still thinking about it, the time to act is now. Stock transfers typically take a few days to execute for the brokers so make sure you give them plenty of time to complete the transaction before year end. Also, the charities will appreciate a quick phone call or email to let them know what stocks you are sending them so they can watch for the transfer. Lastly, always check with your tax advisor to make sure you are maximizing your tax deduction.
If you have questions about timing of donations or would like assistance in determining how to make the most of your timing, the tax professionals at Ciuni & Panichi can help you start planning now. For more information, or on tax reporting requirements, please contact David Reape at 216.831.7171 or dreape@cp-advisors.com.
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