This hypothetical example is for illustrative purposes only. The example assumes an original cost basis for the stock of $50,000 and federal long-term capital gains tax rate of 20%, and an adjusted gross income of $4 million. This example does not take into account any state or local taxes or the Medicare net investment income tax. The tax savings shown is the tax deduction multiplied by the donor's income tax rate of 37%, minus the long-term capital gains taxes paid.