Stock Donation; A Tax Reduction Strategy

Thursday, November 27, 2014 Print Email

According to a research carried out by the Wall Street Journal, the tax payers intending to make charitable donations in a bid to lower their tax bills may be faced with the option of directly donating stocks to charities. This is as opposed to selling these stocks and ultimately donating the proceeds. Clients may decide to pick on the shares that they have owned for more than a year since selection which have appreciated in value.

This in turn enables one to obtain a charitable donation that has a fair market value in one’s return. Additionally, when stocks are sold, one will have to take on a capital gain.

How to reduce your 2014 tax bill smartly

One may get a reduction on the tax bills through avoiding the surtax and monitoring the mutual fund capital gains. It is also important to for tax payers to take advantage of the 0 % capital gains rate or even consider giving away their securities that are appreciated to friends and family who are in the tax bracket of 10-15 %.

Lowing taxes through a two year planner

In order to qualify for tax deductions and ultimate tax reduction, tax payers may consider to make their charitable donations before the last day of the year; 31st December. For single tax filers, they may take $6,200 standard deduction equivalent and $12,400 for those tax payers who file jointly. They may also have the deductions which they are entitled to claim itemized like the local income, mortgage interest, property taxes as well as local income.

Tips that angel investors should know with regard to tax

By having a thorough understanding of their investment, angel investors may reduce their tax burden. They can apply for the 1244 deduction in order to protect them from losses. However, they need to discern tax laws before they invest to receive tax bills that are lower. Forbes

Dividend Investors and tax facts

The full tax benefits of MLPS may only be realized when an individual holds on to units for a number of years. One complicates them by holding them in a retirement account.

Source: ReadyRatios

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