Are stock and crypto donations more tax efficient? Help more animals while maximizing tax deductions.

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Generally speaking, the IRS allows donors to deduct donations made to qualified non-profits, including 501(c)3 organizations like Berkeley Humane. Depending on your tax situation, there may be tax strategies to better support a meaningful cause while maximizing your tax deductions. Donating non-cash assets like stock and crypto may be a strategy to explore with your tax advisor.

Please consult with your tax professional for the most accurate, up-to-date tax advice tailored to your specific situation.

Donate Stocks, Cryptocurrency, or other non-cash Property Assets

The IRS considers stock, crypto, and other investments as property assets—for which investors must pay capital gains tax on the appreciation. Depending on how long the asset has been held, the state you live in, and your tax bracket—capital gains tax can add up to 40%. This means, of every $100 gained, investors may only pocket $60.

  • Short term capital gains (held less than one year) aligns with the income tax bracket. High earners in high tax states (like California) can pay as much as 40%.
  • Long term capital gains (held more than one year) is capped at 20% for federal and 13.3% for Californians—totaling 33.3%.

By donating appreciated stock, cryptocurrency, and other qualifying assets, donors may be able to deduct the fair market value of the donation to offset income and capital gains, all while contributing more dollars to charity.

  • The fair market value of donated assets may be fully deductible to help offset taxable income
  • By donating stock, crypto, and similar assets, charities also benefit from the full pre-tax value

For Berkeley Humane, this means more dogs, cats, puppies and kittens fed, medically treated, and ultimately adopted into loving homes!

Donate Real Estate

In addition to the above capital gains, investors who sell real estate may also be subject to depreciation recapture, Net Investment Income Tax and real estate transaction fees.

  • Depreciation Recapture, capped at 25%, lowers your cost basis which means you have more taxable gains.
  • The Net Investment Income Tax of 3.8% is applicable to single filers reporting $200,000 or couples reporting $250,000.
  • Between the federal and state taxes, depreciation recapture, Net Investment Income Tax, and real estate transaction fees, investors may end up pocketing a small fraction of your appreciated real estate.

By donating real estate, donors may be able to offset much of these gains, deduct the fair market value of the donation, and avoid real estate brokerage commissions and escrow fees.

Ready to start deducting your donations while saving more animals?

Explore how non-cash donations can be more tax-efficient on Berkeley Humane’s website or any of the below resources:

  • Learn more about donating stock, real estate, donor advised funds, and other ways to strategically plan your giving
  • Ready to make an impact? You can support Berkeley Humane and shelter animals in a number of different ways:
    • We accept most types of digital currency, including Bitcoin, Ethereum, Dogecoin, and many more!
    • Start a donation of stock on our website
    • Cash donations are always welcome, and will instantly turn into nutritious food and life-saving medical care for shelter animals

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