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Take Advantage of Tax Benefits!

Take advantage of the tax benefits by donating to SMSF before December 31, 2020.

One way to do that is through stock donations!

There are many ways to give to SMSF besides check and credit card donations. One of the most tax-smart ways to give is through stock donations. By donating stock, you are actually giving more to SMSF while also giving your portfolio a needed health check. It is averaged that you give 20% more through donating stock that you have held on to for more than one year versus selling stock and donating cash. This is because when donating stock directly, there are no capital gains taxes. Added bonus: you are still eligible to deduct the full price of the fair market value of the stock you donated.

In addition to giving more, donating stock can actually help rebalance your portfolio. Just like our bodies need health check-ups to ensure it is working to the best of its ability, so do stock portfolios. Also, if you are emotionally invested in a stock, but it is time to sell, you can donate it to SMSF. By doing so, you are putting your emotional attachment to a good cause, while also minimizing capital gains. It truly is a win-win situation.

Donating stock is fairly easy. All you need to do is download our stock contact information here {link} and connect with our direct donor contact at our brokerage. From there, they will ask you to fill out a form and walk you through the rest of the steps. Pretty easy right? If you have any additional questions, please feel free to reach out to us at 626-299-7014. Please make sure to consult your tax/legal adviser to determine what works best for you.

Don’t have stock or aren’t interested in donating any at this time? Not a problem! Because of the CARES – Coronavirus Aid, Relief and Economic Security Act, a $2.2. trillion stimulus bill signed into on March 27, 2020 – there are additional tax-benefits for donors during only calendar-year 2020. Firstly, CARES lifts limitations on charitable contributions, suspending the 60% adjusted gross income limitations for individuals’ charitable donations for 2020. This means that all cash donations are fully deductible. On top of that, if you are a taxpayer who does not itemize deductions, for contributions made in 2020 you can take a one-time deduction of up to $300. Deductions for both of these benefits must be cash only and do not include Donor-Advised contributions or private foundations.

Take advantage of the benefits of donating stock and the added benefits written out by the CARES Act, by donating to SMSF before January 1, 2021. By doing so, you will continue to provide educational excellence for our SMUSD students. Your donation will go to help fund 34 teaching positions. These are teachers educating our students to help prepare them for their continued educational journey and beyond.

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