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The gift of stocks, bonds, mutual funds, and other securities is a popular way to avoid capital gains tax and allow you to use "paper profits" to help reduce taxes. If the value of securities you would like to give is less than the original cost, it is usually best to sell them and donate the cash proceeds. You may then be able to claim tax benefits for both the capital loss and the charitable gift, effectively deducting more than the current value of the asset. |
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