However, there is a way to avoid these taxes altogether: by donating your stock to charity. This is where Daffy comes in as an excellent option for a Donor-Advised Fund (DAF). When you donate stock that you've held for more than a year to a qualified public charity like Daffy, the IRS considers the donation value to be the fair market value of the asset at the time of donation, not the value you paid for it. This means you can avoid paying capital gains tax on the increased value of the stock, and you can also claim a tax deduction for the full fair market value of the stock. For example, let's say you purchased 500 shares of Apple stock in January 2021 for $130 per share, a total purchase of $65,000, and then decided to sell it in February 2022 for $175 per share, or a total of $87,500. If you were to sell this stock, you would owe a total of $5,468 in taxes on a reported gain of $22,500, leaving you with an after-tax gain of $17,032. But what if you donated this stock to Daffy instead? You would avoid the $5,468 in capital gains tax, and you could claim a tax deduction for the full $87,500 fair market value of the stock. This could significantly reduce your overall tax bill, while also supporting a cause you care about. Donating stock to Daffy is a win-win situation. You get to avoid capital gains tax, claim a substantial tax deduction, and support your favorite charities. It's a smart, tax-efficient way to give, and it's easier than ever with Daffy's simple, user-friendly platform. So, if you're looking for a way to minimize your capital gains taxes while also making a difference, consider donating your stock to Daffy. It's a great way to maximize your giving and your tax savings.