Worthwhile reminder, and education for early-career donors, thanks!
I’d add that if this isn’t a one-off for your lifetime (that is, you reasonably expect to have stock in future years, which you might use to fund donations in future years), it’s worth setting up a Donor Advised Fund. This lets you donate stock (and cash) without capital gains, but also without having to specify the recipient immediately. You get the tax break in the year you donate, even if you make the donation in a future year. It also simplifies recordkeeping, as all the tax-relevant activity is to your DAF.
I just did a quick search and apparently the new $1000 deduction for non-itemizers that comes into effect in 2026 under the OBBBA doesn’t apply to DAF contributions. So a DAF is not useful unless you itemize.
The new law includes a provision, effective after 2025, allowing non-itemizers to take a charitable deduction of $1,000 for single filers and $2,000 for MFJ taxpayers. As has been the case in the past, gifts to donor-advised funds are not eligible. Unlike a previous (but smaller) similar provision, though, this law is not set to sunset.
Worthwhile reminder, and education for early-career donors, thanks!
I’d add that if this isn’t a one-off for your lifetime (that is, you reasonably expect to have stock in future years, which you might use to fund donations in future years), it’s worth setting up a Donor Advised Fund. This lets you donate stock (and cash) without capital gains, but also without having to specify the recipient immediately. You get the tax break in the year you donate, even if you make the donation in a future year. It also simplifies recordkeeping, as all the tax-relevant activity is to your DAF.
I just did a quick search and apparently the new $1000 deduction for non-itemizers that comes into effect in 2026 under the OBBBA doesn’t apply to DAF contributions. So a DAF is not useful unless you itemize.
https://www.racf.org/news/obbba/
Notably DAFs are not able to give to 501c4 advocacy organizations (in the US—not sure about international equivalents).