After TaxTax Playbook

Tax Playbook · Giving, strategically

Donate business stock

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Donate your private company shares directly to a charity before any sale is final, and you can skip paying capital-gains tax on them plus get a deduction for their full value. The gift must close before you sign a binding sale — too late, and the IRS taxes you on the sale anyway. Donating $100,000 of stock you bought for $10,000 can erase a $90,000 taxable gain while creating up to a $100,000 deduction (usually capped at 30% of your income, with extra carrying forward five years). Private shares worth more than $10,000 generally need a qualified appraisal.

Good for: Business owners donating shares before selling the company.

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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.