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The part about donating stock to “avoid taxes” is poorly explained. Yes it reduces taxes but it does so by giving away 100% of a liquid asset to a charity. The
by dasil003 5y ago
The part about donating stock to “avoid taxes” is poorly explained. Yes it reduces taxes but it does so by giving away 100% of a liquid asset to a charity. They could sell the same amount and only pay the top marginal rate plus taxes on the missed deduction, so in effect they are paying more just directing it to a charity instead of the government.
Of course at the high end when you own a significant portion of a public company you can’t actually sell your shares without moving the market, so in that case giving away shares at a nominal value is not the same as paying cold hard cash, but I think they are overstating that nuance the way this is presented.