GursahaneyDoing well in the stock market and worried about the taxes that come with capital gains?  Well, that was our problem when we saw our modest investment in Apple stock soar over the past few years.  While it is always great to make money with your investments, we were concerned that our good fortune was going to come at a high price when we finally sold our stock. 

Balancing that concern with our desire to contribute to the Community Foundation for Northern Virginia, our financial advisor provided us with the perfect solution!  He suggested that we donate our stock to the Community Foundation so we could take advantage of an obscure tax loophole.  It seems that when you donate stock to a charitable organization, you get a tax donation credit for the current value of the stock and not the value of the stock when you purchased it.   More importantly, when the charitable organization sells the stock to support a worthy cause, they don’t have to pay capital gains. 

So, here’s how it works.  If you purchased stock for, say, $10, a share, and that stock over the years increases in value to $100 a share, you will have to pay capital gains to Uncle Sam on $90 per share.  So, if you had a small investment of 100 shares ($1,000) that you wanted to sell, you would have to pay capital gains taxes on $9,000.   But, instead, if you donate those shares to the Community Foundation, you get a tax deduction for $10,000! 
Ways to Give
When we saw the numbers, it just made cents (pun intended)!  So, take a tip from some new members of the Community Foundation of Northern Virginia, and donate your stock. It’s a Win-Win.

See more information about different ways you can give to the Community Foundation.