Charitable Gain Harvesting

Charitable Gain Harvesting is a tax-efficiency strategy that allows you to manage your portfolio’s health while maximizing the impact of your donations. Instead of giving cash, you donate your most successful ("appreciated") assets and immediately use your cash to repurchase them, resetting your tax basis and cleaning your portfolio of future capital gains.

The "Basis Reset" Strategy

If you love a specific stock and don't actually want to reduce your position, you can still use it for your annual giving to "cleanse" your portfolio of future tax liabilities.

1. Donate the shares of the stock you currently own (which have a low cost basis).
2. Use the cash you would have donated to immediately buy the exact same stock back.
3. The Result: You still own the same number of shares, but your new "cost basis" is the current high price. If you sell in the future, your taxable gain will be significantly smaller.

Is This Right For You?

This strategy is most effective if:

• You have assets held for more than one year.

You have unrealized gains (the stock is worth more than you paid).