How can donating appreciated stock instead of cash lower my taxes?

Giving appreciated stock or funds you've held more than a year to charity is one of the most efficient ways to give. You deduct the full fair-market value (if you itemize), and you never pay capital-gains tax on the built-up appreciation, so both you and the charity come out ahead versus selling first and donating cash. For example, donating $10,000 of stock you bought for $4,000 avoids tax on the $6,000 gain while still giving you a $10,000 deduction. The deduction for appreciated assets is limited to 30% of your AGI per year, with a five-year carryforward for the excess. A donor-advised fund makes this practical for ongoing giving. If a holding is at a loss, do the opposite: sell it to harvest the loss, then donate the cash. See wealthserene.com/tools/tax-strategies.