What are the tax benefits of donating appreciated stock?
If you have stock that you have owned for more than one year, and it has appreciated since you purchased it, you can save on the capital gains tax you would owe if you sold it yourself by donating the stock to PETA. And since PETA is a 501(c)(3) charitable organization, you will be entitled to an income tax deduction for the full current market value of your gift, to the extent allowed by law. Here is an example: Ms. B. Nice purchased 100 shares of ABC stock three years ago at $50 per share, or $5,000. This stock is now worth $100 per share, or $10,000. If Ms. Nice sold the stock, she would pay capital gains taxes on the $5,000 of appreciation. If Ms. Nice donates the stock to PETA, she is entitled to a charitable deduction of $10,000 from her taxes and pays no capital gains tax. Plus, you can deduct stock donations equal to an amount of up to 30 percent of your adjusted gross income, and any excess deductible amount can be carried over for as long as five years to offset income or cap
