Question
Jane owns appreciated stock worth $1,000,000 ($100,000 basis). Jane also has income each of year of approximately, $700,000. Jane would like to use the stock
Jane owns appreciated stock worth $1,000,000 ($100,000 basis). Jane also has income each of year of approximately, $700,000. Jane would like to use the stock for charitable purposes over the next several years, however, she has not yet identified the charitable cause she would like to support. Jane also does not want to hold the stock any longer because she feels that the stock will fall in value going forward. She also does not want to sell the stock and recognize all of the gain. Which of the following options best suites Janes goals?
a. Donate the stock to a donor advised fund in the current year, then sell the stock within the fund and reinvest the money or keep it as cash and donate over time.
b. Quickly identify a charity and donate the stock to the charity in the current year.
c. Donate the stock overtime to a charity or donor advised fund. Annual donations should never exceed 30% of AGI.
d. Sell the stock and donate the funds as she chooses over the next several year.
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