tenant13
Full time employment: Posting here.
Let’s start with this : I am not an altruist and do NOT want to donate to any charities UNLESS there’s a financial benefit in it for me. That may be the end of the discussion but the specific questions below:
Knowing that this only applies to itemized deductions and with the intention of using DAF every other year :
1. How would the math work if I donated highly appreciated stock (1000%) currently worth 15k if I’m single and in 22% marginal tax bracket? I know that I can go up to 30% of income deduction in that case but does that apply to the basis or the current stock value (so is it 1.5k or 15k?). If I were to sell that stock, tax in the CG would be almost 3k but I would pocketed 10k instead of giving it away.
2. Can ROTH conversion state tax (I’m in NJ) be deducted if itemized?
I was thinking about doing that in a year when I elect to have extra medical and dental expenses.
Knowing that this only applies to itemized deductions and with the intention of using DAF every other year :
1. How would the math work if I donated highly appreciated stock (1000%) currently worth 15k if I’m single and in 22% marginal tax bracket? I know that I can go up to 30% of income deduction in that case but does that apply to the basis or the current stock value (so is it 1.5k or 15k?). If I were to sell that stock, tax in the CG would be almost 3k but I would pocketed 10k instead of giving it away.
2. Can ROTH conversion state tax (I’m in NJ) be deducted if itemized?
I was thinking about doing that in a year when I elect to have extra medical and dental expenses.