Donating Stocks

by Charlotte Wood
(last updated February 21, 2009)

It's always an investor's greatest dream to make it big. Making coffers of cash through stocks and other investments is really every investor's inner desire; seriously, who wouldn't want to hit it luck with their stocks? However, outrageous success in stocks is a double-edged sword. The underlying catch to all of this is taxes. However, there is a way to avoid taxation while still benefiting yourself and that's where you should consider donating stocks.

If the income tax on your stock returns will be significant, more than you want to pay, then you should definitely consider donating your stocks. You can donate your value-increasing stock to a charity and then you don't have to pay taxes. Also, it's not like you'd be just handing the taxes over to someone else because charities don't have to pay taxes so you'd really be quite the philanthropist if you decided on such a course of action.

The benefit of donating stock doesn't just lie in feeling good about yourself however; you also receive a tax deduction yourself and this deduction is as much as you donated, thus you gain but in a different way. Say you had a $15,000 stock and donated that stock to your favorite charity. Instead of having to pay taxes on it, you actually receive a $15,000 tax deduction because of your generous donation, so that money is just taken off of what you owe the government. (This could manifest itself in either a greater portion of your paycheck allotted to you each pay period, or even better, a hefty tax return!)

Donating stocks is an easy endeavor and only takes a call to your broker or other investment specialist and they'll be able to work with you on your generous donation. Stock donations are great for charities and are sums of money that can make an immediate difference. If you have substantial stock success, you should most definitely consider donating stocks because not only will you benefit financially, you'll also just feel good!

Author Bio

Charlotte Wood

MORE FROM CHARLOTTE

Great Looking Modest Clothing

In today's belly showing, chest spilling fashion world, it's really difficult to find clothes that are modest and look ...

Discover More

Styles that Make You Look Slimmer

Optical illusions are not just in those books you checked out from the library in elementary school, but you can also ...

Discover More

Correcting Skin Blemishes

Few appearance woes are most frustrating than skin blemishes. They pop up unwanted and can be so hard to get rid of. The ...

Discover More
More Money Tips

Understanding the Stock Market

The stock market is easily very confusing and if you don't know the basics, even more confusing. However, in order to ...

Discover More

What is a Derivative?

A derivative is a risk-shifting agreement, which is valued based on the underlying asset. The underlying asset could be a ...

Discover More

Investing in the Stock Market

Investing in the stock market can seem overwhelming and scary, a lot like a really small fish swimming in a really small ...

Discover More
Comments

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is 3 + 5?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)