A record high stock market – should I sell?
If you have looked at your investment portfolio lately, you may see some terrific growth.
When stock values surpass your “cost basis” (original purchase price) in the asset, you may be able to sell the shares at a tidy profit. There’s a downside to this approach, though: typically, you’ll owe capital gains taxes on the stock’s appreciation in value. Instead of selling, consider donating your stocks to charity!
Donating long-term appreciated securities – such as stocks, bonds and mutual funds – can be one of the most financially savvy ways to make a difference in your community. You may save on taxes while also supporting your favorite charities, like Duke!
Potential benefits include:
- Donating appreciated assets directly to charity allows you to avoid capital gains taxes and the Medicare surtax for a combined savings of up to 23.8%. Taking advantage of these tax savings can lower the effective cost of your gift.
- If you have owned the stock for at least one year, you may deduct the current fair market value of the donated assets – just as if you were making a gift of cash (but with the added benefit of avoiding capital gains taxation).
- Interested in receiving income? You can make a gift of appreciated securities to establish a charitable gift annuity or charitable remainder trust at Duke. In addition to a charitable deduction for part of the gift’s value, you and/or a loved one can receive income for life or a term of years.
This information is provided with the understanding that neither Duke University nor the author are providing legal, accounting, tax or other professional advice or counsel. Please consult your personal counsel about the financial, tax, and legal implications of any gift.
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