We encourage you to talk to your tax professionals about your tax situation when applying these tax saving ideas.
$300 cash donation - for standard deduction filers
The CARES Act, passed in March 2020, provided for two changes to deductions for individuals and families:
- Added a new charitable deduction for individuals who DO NOT itemize their deductions. This universal deduction allows for charitable donation of $300 cash, and is expected to continue beyond the 2020 tax year.
- It also increased available deductions for individuals who itemize from 60% of their adjusted gross income to 100% of their adjusted gross income. This may limited to 2020, but it remains to be seen if they will extend this.
reasons to consider giving stock
Gifts of Stock
One of the ways to can make a difference in local education is donating stock. Here are four reasons why you should consider it:
You give more
- By donating stock that has appreciated for more than a year, you end up giving 20% more than if you sold the stock and the made a cash donation. The reason is that you don't have to pay the 20% capital gains tax. And you're allowed to deduct the full market value of that asset on your income taxes as a charitable deduction.
You can potentially reduce future capital gains
- If you have significant appreciated shares, you may wish to use the donation as a way to reset the cost basis of your holdings. You would sell some shares, which would provide a deduction and then buy back new shares at the current price. As it higher, you have reset the cost basis, which helps to reduce your future capital gains.
Re-balance your portfolio
- If you have significant portion of your portfolio in one stock, and if it has significantly appreciated, you may wish to use the donation to re-balance your portfolio by generating deductions to balance capital gains of stock sales as you rotate out of a concentrated position. Talk to your financial advisor to the best strategies that fit your portfolio.
We make it easy
- If you are ready to donate stock to MCEE, let us know via email: firstname.lastname@example.org. We have one simple form for you to complete, and we'll provide you documentation on your donation within 30 days of your donation. We will work with our brokers to ensure that it is an easy process for you. And you will be recognized in our recognition circles.