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← Charitable Giving Tax Strategies
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Question
Why is donating appreciated stock directly to a charity more tax-efficient than selling the stock first and donating the cash proceeds?
1
Charities can reinvest stock gains at a lower tax rate than individuals
2
The deduction is larger when cash is donated rather than stock
3
Stock donations are deductible even for taxpayers who take the standard deduction
4
The donor avoids capital gains tax on the appreciation when donating stock directly
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