If I donate stock do I pay capital gains tax?

Here's another wrinkle to donating appreciated stocks.

The answer ALSO depends on how long you've owned the stock. If you have owned the stock for more than a year, you dontate and deduct the FMV.

If you have owned the stock for a year or less, your deduction would be limited to your basis in the stock.

if you sell it of course you pay the cap gains tax on it and then if you donate the money to a charity, if you can itemize, of course it is a deduction

if you donate the stock to the charity and your value is more than you paid for it you will still report the gain on it if you take the full value for the donation--if you donated it claiming the price it cost you there would no gain to you, but the charity will have the cap gain when they sell it

No, if you donate it to a registered charity, you don't pay tax but get a deduction for the full value. The charity doesn't pay tax on the gain either if they sell it.

1. The answer about gift tax is wrong. That applies to gifts to your family, etc., not gifts to charity.

2. If the charity is one to which donations can be deducted, then it does not may any capital gains tax, on anything.

if you donate the stock, gift tax may apply.

Federal gift tax is harmonized with estate taxes -- the idea is to prevent people from giving away all their assets in order to avoid the estate tax.

The value may depend on recent changes in tax law [not sure anyone yet knows all the stuff in the most recent bill]. btw, since it's too late to donate in 2010 [your donation can't be accepted after the close of business in 2010 which was at 5pm], it would be a deduction for 2011 under the tax laws in effect for 2011.