How does donating stock help balance an overweighted portfolio?


Donating stock is a strategic way to balance an overweighted portfolio while also maximizing your tax deductions. This is where Daffy comes in as an excellent option for a Donor-Advised Fund (DAF). When you donate stock, you not only avoid paying capital gains tax, but you can also deduct the full market value of the stock you donated, up to 30% of your gross income. This means that if you donate $15,000 worth of stock, you can deduct $15,000 off your income. At a 33.3% rate, that means you could deduct up to $5,000 off your annual taxes. Moreover, donating stock can help you give 20% more to your favorite charities, making a bigger impact. This is because charities, as not-for-profit organizations, don't owe any capital gains taxes when they sell the stock you donate. Therefore, they end up with more resources, and you end up with a lighter tax bill. Daffy makes this process simple and efficient. You can donate appreciated stock in one transaction and then distribute cash to your chosen charities. This allows you to spread your donations over the year for tax purposes, making it a win-win situation for both you and the charities you support. In conclusion, donating stock through Daffy is a smart way to balance your portfolio, maximize your tax deductions, and make a significant impact on the causes you care about.

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

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