A client holds appreciated stock and wishes to donate to charity in a tax-efficient way. Donating the appreciated shares directly, rather than selling first, generally allows the client to:

a.Avoid capital gains tax on the appreciation and potentially deduct the fair market value
b.Pay double capital gains tax
c.Convert the gift into ordinary income
d.Eliminate the need for any records

Giải thích

Donating long-term appreciated securities directly to a qualified charity generally lets the donor avoid capital gains tax on the appreciation and claim a deduction for fair market value, subject to limits. Selling first would trigger capital gains. This is a common tax-efficient giving strategy.

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