With the return of Qualified Charitable Distributions (QCDs) this year, it's better to donate from an IRA than to donate cash, writes Michael Kitces. However, donating appreciated securities is the best choice. "The issue is that while a QCD avoids an ordinary income tax rate of up to 39.6%, a donation of appreciated securities also gives a tax deduction that avoids a tax up to 39.6%," Kitces writes. "However, donating the appreciated securities also avoids a long-term capital gains tax."

Related Summaries