If you’re planning to give money to Charity this year, you definitely want to figure out the tax implications in advance.
CNBC reports two ways you might reduce your tax burden:
Instead of giving cash, try donating appreciated securities, such as stocks or mutual funds, according to certified financial planner Sophia Bera, founder of Gen Y Planning.
If you itemize your taxes, you can get a tax deduction for the amount that stock is worth, Bera said. The charity, in turn, does not have to pay the capital gains that you would have to pay if you sold the investment on your own.
“It’s a benefit both for you and for the charity,” Bera said.
Just be aware that while you can still get a deduction for giving to charity under the new Tax Cuts and Jobs Act, it may be tougher to obtain.