| Sell stock and donate after-tax proceeds | Donate stock directly to charity | |
|---|---|---|
| Long-term capital gains taxes owed |
$130,000 ($650,000 x .20)
|
$0 |
| Charitable gift and equivalent tax deduction |
$620,000 ($750,000 – $130,000)
|
$750,000 |
| Tax savings |
$99,400 ([$620,000 x .37] – $130,000)
|
$277,500 ($750,000 x 0.37)
|
Disclosure Title
Disclosure
Disclosure
This hypothetical example is for illustrative purposes only. The example assumes an original cost basis for the stock of $100,000 and federal long-term capital gains tax rate of 20%, and an adjusted gross income of $2 million. This example does not take into account any state or local taxes or the net investment income tax.