I am guessing that since this is just about capital gains, the advice doesn’t necessarily hold for RSUs (if you sell your RSUs immediately), is that correct? I usually only have nominal capital gains due to a few days or weeks’ delay between RSUs being issued and me selling them.
The way this is framed it sounds like it mostly applies to the situation where you have assets but not cash and you would sell the assets to get cash to donate, but it sounds like even if you have cash to donate, if your assets have a lot of capital gains it also makes sense to just donate them and buy more at a higher cost basis as a way to reset your cost basis on some of your stock.
Seems like good advice! Now I just need to see how this interacts with my employer’s donation matching...
Two questions:
I am guessing that since this is just about capital gains, the advice doesn’t necessarily hold for RSUs (if you sell your RSUs immediately), is that correct? I usually only have nominal capital gains due to a few days or weeks’ delay between RSUs being issued and me selling them.
The way this is framed it sounds like it mostly applies to the situation where you have assets but not cash and you would sell the assets to get cash to donate, but it sounds like even if you have cash to donate, if your assets have a lot of capital gains it also makes sense to just donate them and buy more at a higher cost basis as a way to reset your cost basis on some of your stock.
Seems like good advice! Now I just need to see how this interacts with my employer’s donation matching...
1: That’s right. I technically should have said something like “don’t sell significantly appreciated stock to donate”.
2: That sounds right, but be careful with rules around wash sales.