Question: I have a donor who is considering making a noncash gift at year-end. In addition to giving highly appreciated securities, what are other options I should discuss with them?
Answer: Even the shrewdest investor occasionally buys a stock that turns out to be a “dog.” Continuing to hold declining stock, hoping for an upturn, may prove disappointing. Often, it’s smarter financially to cut their losses and sell the “loser.” A really good idea for loss investments: Sell the stock and give the proceeds to charity. They’ll receive the capital loss deduction and a charitable deduction if they itemize.
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