What are the tax benefits of contributing appreciated securities compared with selling the securities and contributing the proceeds?
A. Both types of contributions (securities and cash) are generally tax-deductible. By contributing long-term appreciated securities to a charity, you can avoid paying the capital gain tax you would have incurred had you sold those securities and donated the proceeds to the charity. As a result, you save capital gain tax on the amount of gain realized (the difference between your cost basis and the current market value of the securities).
