Carrie’s 20 Days of Tax Tips – Day 2

Donate appreciated property like stocks or mutual funds. A high stock market like the one we are currently experiencing provides an additional opportunity. Giving appreciated investments avoids capital gains tax and possibly the additional net investment income tax and allows a fair market value deduction. There is a limitation of 50% of your Adjusted Gross Income (AGI), but you can carry-over the unused portion to future years (when the limitation goes up to 60% of AGI). If you are considering gifting mutual funds, do so before the funds declare their capital gains and dividends. You’ll save taxes by not recognizing that income as well.