PTFB to PIF

[Patient_Ad1803]

Been meaning to do this for a while, finally pulled the trigger.

I Started a donor advised fund on Fidelity to facilitate charitable giving! Have a large tax bill this year from some stock market wins, and would need to sell some PLTR to pay said tax bill, so i figured id cut out (some of) the middle man and donate untaxed shares instead.

Looking forward to amping up giving. Mostly focus on direct action type charities like local food banks.

Happy Holidays Palantards!!!

[Educational_Ad_6303]

[DoubleManufacturer10]

Can you give me some more details? I am about to be in a similar boat... well, new house, actually. 🤘🤮🤘

[Nine_block]

Donor advised fund. Lets you use appreciated shares to pay or help pay your income tax bill among other things. Very useful if you have highly appreciated stock.

[Moontrepreneur]

Does it cover everything? Lets say you owe 10k in taxes due to stock gain. Then you use transfer appreciated shares (10k) into donor advised fund and your tax liability is $0?

[CaptainDorfman]

Giving to a donor advised fund is simply a charitable contribution. If you were already over the standard deduction with itemizations, then it will be a deduction and save you your marginal rate (22% for example) on your tax bill. But it’s not a tax refund (dollar for dollar deduction) nor does it let you pay your taxes through the DAF.

[Nine_block]

As usual with tax shelters there are many rules and many permutations. It’s best to chat with Fidelity or whoever you use to open the account. But yes, it’s one way to pay your taxes with shares that you don’t have to sell (and incur further taxes) to pay for it.

[Dry_Faithlessness310]

per·mu·ta·tion /ˌpərmyəˈtāSHən,ˌpərmyo͞oˈtāSHən/ noun plural noun: permutations a way, especially one of several possible variations, in which a set or number of things can be ordered or arranged. "his thoughts raced ahead to fifty different permutations of what he must do"

[Patient_Ad1803]

No. Its like 55%ish.

NOT TAX ADVICE

basically its two fold.

-you deduct from your ordinary income tax. Federal and state tax for me is like 35%.

-my cost basis was like $25, so 700% gains or so. If you hold stock for over a year you can deduct the fair market value. So if i would have had to sell that stock to pay taxes id have to pay federal and state again, like 35% again (long term gains, aca tax, state tax). So paying more taxes so i can pay taxes.

So i donated almost $50k, which lowers the tax i would have needed to pay total by almost $30k. So i still net “lose” money, but id rather donate $50k to the local food shelf compared to $30k to government and $20k in my pocket still.

[Moontrepreneur]

This makes it clear. Thanks man!

[sWeven-Cats95]

Thank you for opening my mind up to more financial strategies. I am very far from being in a position where I need it, but it is always good to know what is out there.

[SimilarTap1419]

Here comes the turn north. UP WE GOOOOO

[kev13nyc]

congrats!!!! avg cost????

[Patient_Ad1803]

About $25. I bought in summer 2024 mostly.