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Charitable Donations with Stocks

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On December 5th, 2006, Rebecca Ward, a single taxpayer, comes to you for tax advice. At the end of every year she donates $3800 to charity. She has no other itemized deductions. This year, she plans to make her charitable donations with stock. She presents you with the following information relating to her stock investment:

Corporation FMV 12/1 Adjusted Date
basis Purchased
Sycamore 9,600 7,800 5/22/02
Oak 2,900 3,800 9/10/03
Redwood 5,400 4,900 6/15/05

Which stock should Rebecca donate to charity? What other tax advice would you give her?

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Solution Summary

The solution discusses charitable donations with stocks, including which stocks should be donated and other tax advice given to a single taxpayer.

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This would all depend on how much of a tax savings she wants to achieve. By donating the Sycamore stock, she will be able to write off $9,600 and assuming she is in the 28% tax bracket, realize a much higher tax break than if she donated any of the other two ...

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