Tax Savvy Giving: Gifts of Stock

Van Norden Meadow, part of Royal Gorge. Photo by Bill Stevenson

The end of the year is fast approaching and the Truckee Donner Land Trust looks forward to your support in order to continue our critical work

If the stock market has been good to you, there are significant tax advantages to giving appreciated stock that you have held for more than a year. You’ll get a tax deduction on the fair market value of the securities and avoid the capital gains tax on the appreciated stock. (Which you can buy back to reset the cost basis!)

1) You save on taxes
By donating stock rather than selling it, you avoid paying capital gains tax, which can be as high as 20% for long-term holdings, such as stocks held more than one year.

2) Gifts of stock can be deducted
For those of you itemizing, gifts of stock can be deducted at the stock’s fair market value on the day you donate it.

3) Keep your portfolio
If the stock is at a higher value, donating and buying back new shares resets your cost basis at the current, higher price, thus decreasing future capital gains difference as the stock grows in value.

And if it sounds complicated compared to a cash or credit donation, we have it broken into just a few simple steps: click here.