Submitted by Kate Hennessy on November 27, 2018
On this #GivingTuesday….check out my article about charitable gifting and year end tax planning. Donating appreciated assets is easier and more beneficial than you may realize.
At this time of year, it’s common for individuals to make charitable contributions. We recently had an opportunity to make a donation to a non-profit organization. In lieu of writing a check to the organization, I reviewed our holdings within our taxable account and identified that we could make the same donation by gifting a mutual fund. The mutual fund had a long term unrealized gain (profit that exists on paper from an investment that has yet to be sold in return for cash.) The benefit of gifting an appreciated asset is we avoided recognizing a long-term capital gain and also received a tax deduction. The non-profit organization was easy to work with and required minimal paperwork. If you have any unrealized capital gains in your taxable brokerage account, you might want to read this article on how to donate an appreciated asset - you might come out further ahead.