Ask Terry Questions Charitable donations from an IRA

Charitable donations from an IRA

By Terry Savage on February 07, 2021 | Financial Planning / Retirement

Re subject: is donating available cash better, or a stock that has a large unrealized gain?
Thanks

Terry Says

If you plan to die with the stock, under CURRENT law (which might be changed) your heirs get a “step-up” in basis. That means when they inherit the stock, their cost currently is the cost on the date of your death. Again, there has been some discussion of changing that. But if you were going to sell it anyway, you can donate it and not pay the capital gains taxes.

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