As the year ends, it’s a good time to review your finances, finalize any charitable contributions and other activities that can help reduce tax implications and plan for 2020.
Many people wait until December to get a clear idea of their year-end financial situation to make their yearly charitable contributions. Most automatically think of cash donations, but there are several reasons to consider donating stock instead of cash.
Of course, this and all other financial decisions should be discussed with a registered investment advisory firm, like HCR Wealth Advisors, which can guide investors as to the best place to move their investments and the type of funds that should be considered for end of year contributions.
Consider Donating Stock to Your Favorite Charity:
A lot of people don’t even think of donating stock, but there are many favorable reasons why contributing stocks is a financially sound idea.
- Stock donations are tax deductible for those that itemize their taxes. Because recent changes in standard deductions, the level is now higher. Those looking for year-end contributions to help lower their taxable income by the amount of the stock donated.
- Stock donations are limited up to 30% of adjusted gross income.
- Donating stock or cash will help charitable organizations keep their programs alive and helping those in need.
- When donating an appreciated stock, the tax liability is removed from your portfolio thereby reducing capital gains taxes that can often be as high as 20%.
- There will be opportunities to decided how the available cash is spent. Whether it’s reinvested, saved, etc.
- Those that donate stocks can take full fair market value as a deduction.
Choose the Right Wealth Management Firm:
It is important to choose the best registered investment advisory firm. HCR Wealth Advisors offer a wide range of services like Financial Services, Wealth Management, Business Services, Insurance Services and consulting services. They offer just about any type of service investors could want, while keeping their investments safe.
This article is provided for informational purposes only and should not be interpreted as investment advice.