The Benefits of a Stock Donation Over Cash

HCR Wealth Advisors has been in business since 1988, helping investors make the most out of their money and grow wealth. Founded by Greg Heller, he is the current CEO of HCR Wealth Advisors, which focuses on integrating client investments, retirement plans and financial targets into one strategy inĀ order to grow and mature wealth.


Avoiding Capital Gains Tax on Stock Income

If you have stock that has appreciated over time, you are going to pay capital gains tax on any of the income the stock produced. When you are going to make a charitable donation anyway, you can avoid capital gains tax by donating your stock instead. The recipient gets the stock at full value, and you get to write off your donation on your taxes at the same value. It’s a double win for you and makes your contribution higher to the charity than if it was cash.

Giving Back to Charity

Many clients of HCR Wealth Advisors want to know how to best donate to charities every year. While cash donations are a direct way to make an impact, so are donations of stock. It’s an easy transfer process, and you don’t have to worry about liquidating the stock on your own. When you know you are going to make a charitable contribution each year to an organization, you’ll be able to give more than if you donated straight cash by donating stock.

Your charitable organization has the ability to keep the stock or liquidate on their own. Once you relinquish the stock, you don’t have to worry about further capital gains and your overall taxes. Give back without using your cash surplus and avoid capital gains taxes at the same time.

This article is provided for informational purposes only and should not be interpreted as investment advice.