Saving Income Tax by Donating assets
Hi I’m Wes Coulson, and this is your estate planning minute.
Since we’re at the end of the year, I want to pass along a handy end of the year income tax planning tip for you. A lot of people make contributions toward the end of the year. Most of the time, we simply write checks. There’s a more tax advantageous way of doing that. If you have some appreciated assets, for instance, your google stock that you bought for 80 dollars a share, and now it’s worth more than $500 a share, if you donate that appreciated stock, rather than cashing it in, paying tax on it, and donating the money, you will never have to pay the tax on that capital gain, and the charity or religious organization that you’ve given the stock to can sell it, and since they’re tax exempt, they won’t have to pay tax on it either. So try it, it works! Thanks.
