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During this time of year many people who have means consider donating to charity. Even those without a lot of money are in a more charitable spirit toward the end of the year. From a financial standpoint, HCR Wealth Advisors want to educate you on the best ways to invest during this time of year and throughout the year.
Did you know that stock is able to be donated? HCR Wealth Advisors educates its clients regarding the various options to be considered when donating. Speak with a professional at HCR Wealth Advisors about donating stock instead
Appreciated stock donations are confined to 30% of your AGI or adjusted gross income, however it will remove a tax liability from your portfolio. To determine if donating stock is a better option for you and your specific situation., consult with your trusted HCR advisor.
If you donate stock that is highly appreciated it removes the entire tax liability of the appreciated portion from your portfolio.
You can find a better use for your cash if you donate stock instead of cash. Perhaps you can purchase other stocks and make investments with the cash. This helps to ensure your desired asset allocation can be maintained. This is also a good time to consider selling some of your stock to raise cash. By donating stocks however, you can receive a tax deduction for the full fair market value. Accordingly, the donation is of a larger size because you do not have to pay capital gains tax on the stock. Your charitable deduction is increased because the dollar amount is higher when you invest when you donate stocks as opposed to cash. The cash amount may seem higher at first because it reduces your taxable income. Speak with a professional at HCR Wealth Advisors to determine if donating stock is a better option for you and your specific situation.
This article is provided for informational purposes only and should not be interpreted as investment advice.