HCR Wealth Advisors knows that you want to maximize your philanthropic efforts. As you look at your year-end charitable contributions, it’s time to optimize what you are going to give to various charities that are dear to your heart. Instead of liquidating assets and running the risk of paying capital gains tax, you have other options. You can donate stock to a charity, eliminating your capital gains and optimizing the benefit to both you and the charity.


When Stock Has Made Money

Stock that has appreciated requires you to pay capital gains tax if you cash it out yourself. When you donate your stock instead, this can wipe out any tax liability you might accrue by owning the stock. You’ll get to deduct the value of your stock as a charitable donation on your taxes, and you won’t have to deal with paying off a tax debt because of any capital gains. Highly appreciated stock can cost you thousands in capital gains tax, while it costs you nothing to donate it to a charity.

Maximize Your Donation

If you liquidate a stock, pay off the taxes, and then donate the remaining cash, you are missing out on a big opportunity. Make your donation larger and therefore more impactful when you donate stock instead. When you choose to donate stock, everyone wins. You aren’t going to be stuck with a big tax bill that reduces your ability to donate to your favorite charity.

HCR Wealth Advisors was founded by Greg Heller in 1988, and he is the current CEO. He knows what it takes to provide education and guidance to investors in order to maximize wealth through integrated client investments.


This article is provided for informational purposes only and should not be interpreted as investment advice.