Discover a savvy tax-saving strategy: donating appreciated stock to charity. Dr. Friday shares how this approach can help you avoid capital gains taxes while securing a full deduction for the stock’s current value. This method can be especially beneficial for taxpayers in higher brackets, allowing them to support causes they care about while also enhancing their tax savings. Dr. Friday explains a real-life example where a client donated $80,000 in stock, bypassing tax on capital gains and deducting the entire amount. For guidance on leveraging charitable donations, reach out to Dr. Friday’s Tax and Financial Firm.
Transcript: G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info go to www.drfriday.com. This is a one-minute moment.
Do you know one way of actually putting a lot of money in your pocket and really not having to do much? Let’s say you have a stock and it has appreciated over the years and you’re like I really don’t want to sell it because it’s going to kick me into the 25% tax bracket because I have all of these gains. What if you think about donating that to a charity? So you have a big lump. I had a gentleman do this the other day. $80,000 donated the stock to the charity. He never had to pay tax on the capital gains. He got to deduct all $80,000. Talk about putting more money in your pocket and if you need help all you have to do is call us.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.