Read on Twitter
Stock Investor Tips There was a lot of commotion about how much President Trump paid in federal income tax recently
Most financially literate people know that (if done correctly) this is legal
There is also a “tax hack” you can implement through stocks
[Thread]
Charitable Contributions*Donating to charity is tax-deductible
*Most folks donate cash to charity and then write it off on their taxes
*A more efficient way to reduce your taxes is through donating stocks
Why Do It?*There are 3 major benefits:
No capital gains tax needs to be paid for the appreciation you earned since you bought the stock
The total market value of your stock at the time of donation is tax-deductible
Can donate more $ value instead of giving cash
What’s the Catch?*You would have to sell a “winner”
(works best if you were intending to sell the stock in the first place)
*You can only donate stock(s) worth up to 30% of your adjusted gross income (AGI)
Conclusion*Donating a stock versus cash to charity can provide benefits for both you and the organization
*There are more details to consider that maybe Money Twitter’s resident tax expert @AskForTaxAdvice can provide via a more detailed thread
