Once your bonds have been appreciated you are advised to transfer these bonds to a worthy cause like charity. By doing this you will see a significance on your tax deduction because of this contribution. And you would be able to avoid the capital gains tax which would be due on the sale of the stock.
If you are going to cash in your stocks and bonds you should know that when receiving the funds from your brokerage house there will be a tax imposed and this tax is normally 15% if you have had the stock for at least a year. If you did not hold this particular stock for the entire year you will end up paying a rate of about somewhere between 25 and 30%. When you are complete with the sales of your bonds and have gotten the proceeds you now can contribute the necessary funds to the various charitable organizations.
And in this event both you and the charity organization will benefit from this as if the bonds are transferred straight from the account of your brokerage to the account of the charities brokerage. Because you will not come in contact with these funds there will be no capital gains taxes and also no income tax. An example of this is that you bought 500 shares at CarMax for over a year at $9 dollars per share, for a total cost of $4,500 dollars. This present day that same stock is worth $20 dollars per share or a total of $10,000 dollars.
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