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QCD vs Donating Stock: Which Is Better for Retirees?

Josh Rendler, CFP®

Creator of Motion Retirement

Updated 2026-10-12 · Tax year 2026 · Figures checked October 10, 2026 · How this is checked

Is a QCD or donating stock better for retirees?

It depends mostly on two things: do you itemize, and would you ever sell the shares? At 70½ or older, a QCD (money sent straight from your IRA to a charity at 70½ or older, not taxed as income, up to a yearly limit) often does more. That's true if you take the standard deduction (the flat amount most people can subtract from income without listing costs). A stock gift can do more if you itemize and hold low-cost shares you'd sell anyway. Many retirees use both.

  • A QCD keeps IRA money out of your income. It lowers your AGI (your total income minus a few set subtractions, the number many tax rules start from). A stock gift gives you a deduction and skips the tax on the gain.
  • If you take the standard deduction, a stock gift gives no deduction at all. The 2026 non-itemizer deduction (a 2026 deduction for cash gifts to charity, even if you skip itemizing) is for cash only. So a QCD usually does more.
  • A stock gift can win if you itemize and would sell low-cost shares anyway. Keeping the shares until death changes that. Heirs get a step-up in basis (the rule that usually resets an inherited investment's cost to its value at death; IRAs don't get it). It erases most of the edge.
  • The QCD limit is $111,000 per IRA owner in 2026. Gifts of stock held more than a year to a public charity (a charity like a church, school or hospital that gets the best tax treatment for gifts) are capped at 30% of AGI, counted after other gifts. The cap is lower for private foundations (a charity funded mostly by one person, family or company, not a public charity).
  • Two 2026 rules shrink deductions. By my reading they cut into stock gifts but not QCDs. One is the 0.5% floor (a 2026 rule: the first sliver of your charity gifts, half a percent of income, is not deductible). The other trims deductions in the top bracket.
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Neither is better for everyone. A QCD usually does more if you take the standard deduction. A stock gift can do more if you itemize and hold low-cost shares you’d sell anyway.

This page is for retirees who own an IRA and shares in a regular brokerage account. It sets the two side by side and works two made-up households through the numbers.

What is the difference between a QCD and donating stock?

A QCD keeps IRA money out of your taxable income (the part of your income that tax rates are actually charged on). A stock gift gives you a deduction and skips the tax on the gain. Almost everything below comes from that difference.

A QCD is money sent straight from your IRA to a charity. A gift of shares comes from a regular brokerage account.

One kind of charity comes up a few times below. A supporting organization (a charity set up to help one or more specific public charities) is set up to help one or more specific public charities.

QCD Gift of shares that grew
Where the money comes from A traditional or inherited IRA (an IRA you get from someone who died), or a SEP or SIMPLE IRA with no employer contribution that year.12. Paid by the IRA firm straight to the charity, never to you first.345 Shares in a regular brokerage account
Age needed 70½ or older on the day the money leaves the IRA.6 None
How it saves tax Left out of income before AGI, so it can't also be deducted.78 Its value on the day you give it, if held more than one year.91011121314, less the 2026 floor, and the gain isn’t yours to report (below)
Itemizing and AGI No need to itemize, and it lowers your AGI Itemized, so it lowers taxable income but not AGI.15161718
Counts toward your RMD Counts toward your RMD for the year.1920, once yours start: 73 or 75, depending on birth year.2122. An inherited IRA is different. Its withdrawals are set by the owner’s death, not your age, so they can already be running at 70½23 No
Yearly limit $111,000 per IRA owner in 2026 ($108,000 in 2025).242526 A share of your AGI, not a dollar amount (the caps)
Timing Counts in the year the IRA firm pays it.27 The year the gift is complete (the gift date)
2026 non-itemizer deduction Not needed Doesn’t apply. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.28293031
2026 0.5% floor and top-bracket trim Don’t apply, since nothing is deducted From 2026, itemized gifts count only above 0.5% of AGI.323334. From 2026, a 2/37 trim in the 37% bracket, so a fully hit dollar saves about 35 cents.3536
Donor-advised fund or private foundation A public charity, not a donor-advised fund, supporting organization or most private foundations.3738 Allowed, a donor-advised fund included. Generally what you paid; publicly traded stock gets full value.3940
Paperwork A 1099-R, a charity receipt, and the right lines on Form 1040. See QCD reporting A written charity receipt for gifts of $250 or more, in hand by the day you file.414243. Form 8283 (the tax form you add when you deduct gifts of things other than cash, like stock) if non-cash gifts top $500 for the year.4445464748

The floor and the trim both cut deductions. By my reading, neither reaches a QCD, because a QCD is never deducted.7

Why can a QCD do more than a charity deduction?

Because it lowers your income even if you don’t itemize.

A QCD is left out of your income, so it never reaches your AGI.78 Because of that, you can’t also deduct it as a charitable gift.7 If your IRA holds after-tax money, the QCD comes first from the money that would be taxed.7

It only helps for money that would have been taxed anyway.

Only money that would otherwise be taxed can be a QCD.49 A qualified Roth withdrawal is already tax-free, so it can’t be one.5049

Deducted IRA contributions after 70½ shrink it too.

Deducted IRA contributions for years ending once you’re 70½ or older shrink the QCD you can leave out of income.51 It shrinks dollar for dollar, minus amounts that already shrank earlier QCDs.51

See who can do a QCD.

A deduction works differently. You list your itemized deductions (costs like charity gifts you list one by one on your return instead of the flat amount), and the list must beat your standard deduction.

In 2026, the standard deduction is $32,20052 for a married couple filing jointly and $16,10052 for a single filer. Each married spouse 65 or older adds $1,65052. A single person 65 or older adds $2,05052, unless they are a surviving spouse.

In 2026 there is one exception for people who don’t itemize. It doesn’t cover stock or other property (anything you own other than cash, such as stock or a fund, not just a house). It doesn’t cover carryovers (the part of a gift too big to deduct this year, saved for up to five later years) from earlier years either.

From 2026, if you don’t itemize, you can deduct up to $1,00028 of cash gifts, or $2,00028 on a joint return.28 The cash must go to a public charity, or one of a few special foundations, not a donor-advised fund or a supporting organization.2930 Gifts of stock or other property don’t count, and neither do carryovers from earlier years.29 It lowers your taxable income, but not your AGI.31

If you also give cash, the hurdle is higher. By my reading, your itemized list has to beat your standard deduction plus that cash deduction.28

A QCD also lowers AGI, not just the income you pay tax on. Several retirement costs follow AGI or MAGI (your AGI with a few things added back, used by rules like Medicare's charge):

  • Medicare’s IRMAA (an extra Medicare charge you pay when your income is above a set line) charges. AGI plus tax-exempt interest, usually from two years earlier.535455 See IRMAA.
  • The phase-out of the senior deduction (an extra deduction for people 65 and older from 2025 through 2028). An extra $6,000 per person 65 or older, 2025 through 2028, itemizing or not.565758
  • How much of your Social Security is taxed.
  • The 3.8% tax on investment income, but only sometimes.

To test whether your Social Security is taxed, add half your benefits to your other income, including tax-exempt interest.5960 That test starts from AGI, so income left out of AGI, like a QCD, doesn’t count.60 Above a base amount, up to 50% of benefits can be taxed, and up to 85% above a higher one.59

The 3.8% net investment income tax applies to the smaller of your investment income or your income above a threshold.61 By my reading, gain on stock you give away and never sell isn’t counted.61

So lowering AGI helps with that 3.8% tax only when the income-above-the-line number is the smaller one. An itemized deduction lowers none of these. Itemized, so it lowers taxable income but not AGI.15161718

The 2026 rules widen the gap.

From 2026, if you itemize, your gifts count only above 0.5% of your AGI.32 By my reading, the floor comes off after the yearly AGI caps.33 It comes off in a set order, starting with gifts under the 20% cap and ending with cash to public charities.34

From 2026, itemized deductions are trimmed if your income reaches the 37% bracket.35 The trim is 2/37 of the smaller of two amounts: those deductions, or your income above where that bracket starts.35 That income is counted before itemized deductions come off.36 The trim comes after every other limit, so each dollar fully hit saves about 35 cents.3635

By my reading, a QCD avoids both, because it is never deducted.7

Can you donate stock to avoid capital gains tax?

Usually yes. Give shares held more than a year, and the gain is generally not taxed.

One exception is a sale the charity was already bound to make.

The charity can sell the shares after you give them.62 There is a clear test for one case.62 It comes from an IRS ruling about a company buying back donated shares.62 There, the gain is yours only if the charity is bound, or can be forced, to give up the shares.62 A charity that is only expected to sell is not enough.62 By my reading, that ruling is about a buyback, not a sale to an outside buyer.62 So a sale already agreed before the gift is the real risk.62

See can the charity sell the shares right away.

If you itemize and give to a public charity, you can deduct the shares’ full value. Its value on the day you give it, if held more than one year.91011121314. What you can deduct in one year is capped as a share of your AGI. The caps differ by gift and charity. See how much stock you can deduct.

Gifts over a yearly cap can be deducted in the next five years, but not after that.63 In those years, they generally keep the same cap.63 Within each kind of gift, new gifts are used before carryovers, and older carryovers before newer ones.64 Qualified conservation gifts get 15 years instead of five.65

That skipped gain is the stock gift’s edge over a QCD. But it’s only real if you’d sell the shares someday.

When you die, your heirs’ cost for stock generally resets to its value on the day you die.66 If they sell within a year of your death, it still counts as held more than a year.66

Pre-tax IRA money gets no step-up when you die.67 Whoever inherits it pays income tax when they take it out.67 It’s taxed as ordinary income, no matter what the investments gained.68

So keeping the stock and giving from the IRA often works better over the long run.

Can I give stock from my IRA as a QCD?

There’s no tax edge to it.

No QCD rule says the gift must be cash.69 Tax-form instructions even have a code for a QCD of IRA assets with no easy market value.69

Shares inside a traditional IRA get no special treatment for the gain. By my reading, a QCD of cash and a QCD of shares leave out the same amount.7

When does a QCD tend to come out ahead?

A QCD usually does more when one or more of these is true:

  • You take the standard deduction, even after a stock gift. Then the stock gift’s deduction is worth nothing. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.28293031
  • You have a required withdrawal you don’t need. That’s your RMD (the least you must take out of a regular IRA each year once you reach a set age). Counts toward your RMD for the year.1920 See how QCDs and RMDs work together.
  • Your AGI is near a line that matters to you, such as an IRMAA tier.
  • You plan to keep the stock until death. Cost generally resets to the value on the day you die.66 So skipping the gain now is worth little.
  • Your income reaches the 37% bracket before itemized deductions. From 2026, a 2/37 trim in the 37% bracket, so a fully hit dollar saves about 35 cents.3536

When does donating stock tend to come out ahead?

A stock gift usually does more when:

  • You’re under 70½ and you itemize. You can’t do a QCD yet. 70½ or older on the day the money leaves the IRA.6 A stock gift only helps if you itemize.
  • You itemize anyway and own low-cost shares you’d sell, for example to spread out one big holding.
  • You give more than the QCD limit. $111,000 per IRA owner in 2026 ($108,000 in 2025).242526
  • The gift goes to a giving fund at a charity. That’s a donor-advised fund (a giving account at a charity that holds your gifts until you pick where they go). A QCD also can’t reach a supporting organization. A public charity, not a donor-advised fund, supporting organization or most private foundations.3738
  • The gift goes to a private foundation. Generally what you paid; publicly traded stock gets full value.3940 The yearly cap is lower there too.
  • Your IRA is small or set aside for something else, like Roth conversions.

A donor-advised fund is an account held by a charity, called a sponsor, under your name.70 Once you give, the sponsor controls the money, and you only advise on grants and investments.70 The sponsor can’t be a private foundation.71 So by my reading, a gift to a sponsor that is a public charity counts as one.71 A few kinds of sponsor are ruled out by name, and gifts to those aren’t deductible.72 Those are a veterans’ group, a fraternal society, a cemetery company, or certain supporting organizations.72 Your receipt from the sponsor must also say the sponsor has full legal control of what you gave, or there’s no deduction.72 On a grant to a person, even family, the sponsor would owe a 20% tax.73 So sponsors make grants to charities, not to people.73

When is a QCD not worth it?

A QCD has a few limits worth knowing:

  • It can’t reach every charity. A public charity, not a donor-advised fund, supporting organization or most private foundations.3738
  • It gives no deduction. Left out of income before AGI, so it can't also be deducted.78
  • Money already taken out can’t become a QCD later. Counts in the year the IRA firm pays it.27
  • It has a yearly limit. $111,000 per IRA owner in 2026 ($108,000 in 2025).242526
  • It has a deductibility test. See the QCD rules. That test brings in the charity receipt (the written receipt a charity gives you for a large gift, needed before you file) rule. A written charity receipt for gifts of $250 or more, in hand by the day you file.414243

Worked example 1: a couple that takes the standard deduction

Worked example · tax year 2026Non-itemizers giving $15,000: QCD vs. stock
Assumptions
  • Hypothetical married couple, both age 74, filing jointly. AGI $90,000 before any gift, including a $40,000 RMD from his IRA.
  • Other itemized deductions (state and local taxes, etc.) total $10,000.
  • Standard deduction is the 2026 joint amount plus the age-65 additional amount for each spouse.
  • They own index fund shares worth $15,000 with a $5,000 basis, held more than 1 year, and do not plan to sell them.
  • The tax value uses the 2026 federal bracket for this taxable income (shown below). Federal only, no state tax modeled.
  • Both are 65 or older with AGI under $150,000 either way, so each gets the full $6,000.

Step 1: would a stock gift make them itemize?

Item Amount
Standard deduction (joint) $32,20052
Plus age-65 additional amount × 2 ($1,65052 each) $3,300
Total standard deduction (the two rows above) $35,500
Itemized with stock gift: $10,000 + $15,000 − 0.5% floor ($90,000 × 0.5% = $450) $24,550
Larger deduction Standard deduction ($35,500 is higher than $24,550)

Step 2: compare the two gifts.

Step QCD of $15,000 Give $15,000 of stock
AGI $90,000 − $15,000 = $75,000 $90,000
Charitable deduction used None needed $0 (they take the standard deduction)
Taxable income ($35,500 standard and $12,000 senior deductions) $75,000 − $47,500 = $27,500 $90,000 − $47,500 = $42,500
Federal tax $2,804 $4,604
Federal tax saved $1,800 ($15,000 × 12%74; all of it sits in one bracket: $27,500 to $42,500) $0
Capital gain avoided n/a $10,000, but they weren’t going to sell. Long-term gains are taxed at their own rates, and the lowest of those rates is zero75. By my math, a gain this size would sit in that zero-rate band for this couple. So even selling would have cost them no federal tax on it

Result: The QCD saves about $1,800. The stock gift saves nothing this year. The QCD also counts toward his RMD and lowers AGI by $15,000.

The QCD came from his IRA. So it counts only toward his own RMD and his own limit. If she has an IRA, she has her own limit. $111,000 per IRA owner in 2026 ($108,000 in 2025).242526

Worked example 2: an itemizing couple with one big holding

Worked example · tax year 2026Itemizers giving $50,000 with a low-basis stock position
Assumptions
  • Hypothetical married couple, both 73, filing jointly. AGI $400,000 before any gift, including a $60,000 RMD.
  • Other itemized deductions of $40,000, which already exceed the standard deduction, so every additional deductible dollar counts.
  • The tax value uses the 2026 federal bracket for this taxable income (shown below); it is not the 37% bracket, so the top-bracket trim does not apply.
  • They own a concentrated stock position. The $50,000 slice they might give has a $5,000 basis and has been held more than 1 year (Step 4 varies the basis).
  • If sold, the gain would be taxed at an assumed 15% plus the 3.8% net investment income tax (18.8% total). NIIT is assumed to apply to the full gain, and other income is unchanged.
  • No other charitable gifts this year. Federal only, no state tax modeled.
  • Both are 65 or older, but at $350,000 to $400,000 of AGI their senior deductions are fully phased out.

Step 1: this year’s tax saving from each choice.

Step QCD of $50,000 Give $50,000 of stock
AGI $400,000 − $50,000 = $350,000 $400,000
30% AGI limit check (first) n/a $400,000 × 30% = $120,000, not reached, so the whole gift is still allowed
0.5% floor (next) Does not apply (no deduction) $400,000 × 0.5% = $2,000
Deductible amount n/a $50,000 − $2,000 = $48,000
Taxable income $350,000 − $40,000 = $310,000 $400,000 − $40,000 − $48,000 = $312,000
Taxable income with no gift $400,000 − $40,000 = $360,000 $360,000
Federal tax saved this year $50,000 × 24%74 = $12,000 $48,000 × 24%74 = $11,520

Step 2: what happens to the stock they didn’t give?

Step QCD of $50,000 Give $50,000 of stock
Built-in gain still held in the $50,000 slice $50,000 − $5,000 = $45,000 $0 (given away)
Tax if they later sell it (18.8%) $45,000 × 18.8% = $8,460 $0

Step 3: total, under two plans for the stock.

Their plan for the shares QCD tax benefit Stock gift tax benefit Larger benefit
Will sell to diversify $12,000 − $8,460 = $3,540 net $11,520 Stock, by $7,980
Will hold until death (step-up) $12,000 $11,520 QCD, by $480

The sale tax in the first row is counted as if the sale happened this year. If the sale is years away, the stock gift’s edge is smaller than shown.

This table counts only their own tax. It leaves out what each plan leaves their heirs. The QCD spends pre-tax IRA money that heirs would otherwise have owed income tax on. The stock plan gives the shares away and leaves that IRA money, and that future tax, in place. By my reading, that widens the QCD’s edge in the hold-until-death row. How much depends on the income tax bracket of whoever inherits the IRA.67

Step 4: how the “will sell” result changes with what they paid. The stock gift’s benefit stays $11,520 at any cost. Only the QCD side changes.

Basis of the $50,000 slice Gain if sold Tax on gain (18.8%) QCD net ($12,000 − tax) Larger benefit
$5,000 $45,000 $8,460 $3,540 Stock, by $7,980
$25,000 $25,000 $4,700 $7,300 Stock, by $4,220
$45,000 $5,000 $940 $11,060 Stock, by $460
$50,000 $0 $0 $12,000 QCD, by $480

The answer here turns on two things: the couple’s plan for the shares, and what they paid. Tax rates matter less.

If they plan to sell and paid little, giving the low-cost slice does the selling for them, tax-free. What they paid is their cost basis (what you paid for an investment, or after-tax money put in an IRA, used to figure what part is taxed). As it gets close to the value, the edge shrinks. Here it flips to the QCD once the gain left is under about $2,553. That’s where 18.8% of the gain equals the $480 gap.

If they plan to hold until death, the QCD wins on this year’s tax. It also lowers AGI by $50,000. For some households that is worth more than $480, through IRMAA or the tax on investment income. It isn’t for this couple. Using the 2026 tier lines, both AGI figures sit in the same tier, and they have no investment income. Keep in mind that a later year’s IRMAA uses an earlier return. So the lines that end up applying aren’t set yet. AGI plus tax-exempt interest, usually from two years earlier.535455

Can I do both a QCD and a stock gift in the same year?

Yes. They come from different accounts and follow different rules. Here’s a common order for retirees 70½ and older who give large amounts:

  1. QCDs first, up to the RMD, or up to the per-owner limit for bigger gifts. Counts in the year the IRA firm pays it.27
  2. Stock next for gifts beyond that, using the shares with the biggest gain. This also works for gifts a QCD can’t reach, such as a donor-advised fund.
  3. Cash last. Cash has no gain to skip and doesn’t lower AGI. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.28293031

Combining them has one catch for people who itemize. A QCD lowers AGI, which also lowers the 30% cap on stock gifts. It lowers the 0.5% floor too, which helps you. For most households the cap is far away. For a very big stock gift in a low-income year, part may move to later years. That’s a carryforward. See carryforwards.

What is the most tax-efficient way to donate to charity?

At 70½ or older, the most tax-efficient order is often this. First, a QCD from a pre-tax IRA. Next, shares you’d sell anyway. Then cash. The order can flip if you have large itemized deductions and own low-cost shares you plan to sell. It can also flip if you’re under 70½.

These are the things that tend to decide it. None settles it alone. How they net out depends on your whole return.

What to weigh What it points toward Why
Your age and accounts Under 70½, or no pre-tax IRA: stock (if you itemize) or cash. 70½ or older with an eligible IRA: a QCD is available 70½ or older on the day the money leaves the IRA.6 A traditional or inherited IRA, or a SEP or SIMPLE IRA with no employer contribution that year.12
Whether you itemize after the gift Standard deduction either way: a QCD usually does more A stock gift’s deduction is worth nothing without itemizing. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.28293031
Whether you’d ever sell the shares Would sell: compare the stock’s deduction plus skipped gain with the QCD (example 2). Would hold until death: the QCD usually does more Cost generally resets to the value on the day you die.66
What you paid for the shares Low cost widens the stock gift’s edge; cost near value removes it Only the gain is skipped (example 2, step 4)
AGI near a line (IRMAA, senior deduction, NIIT) Leans toward a QCD Only a QCD lowers AGI. Itemized, so it lowers taxable income but not AGI.15161718 For the 3.8% tax, only when your income above the threshold is the smaller amount (why)
Income reaches 37% bracket before itemizing Leans toward a QCD From 2026, a 2/37 trim in the 37% bracket, so a fully hit dollar saves about 35 cents.3536
Gift goes to a donor-advised fund or most private foundations Stock or cash A public charity, not a donor-advised fund, supporting organization or most private foundations.3738 Generally what you paid; publicly traded stock gets full value.3940
Giving more than the QCD limit QCD up to the limit, then stock or cash $111,000 per IRA owner in 2026 ($108,000 in 2025).242526

Common mistakes

  • Giving stock and expecting a deduction when you don’t itemize. The deduction is worth nothing. Up to $1,000 ($2,000 joint) of cash to public charities, from 2026, if you don't itemize.28293031. Giving shares away is not a sale, so there’s no gain to report.76 By my reading that usually beats selling and giving the cash. Not always, though. If your gain would be taxed at 0%, selling and giving cash can get you the 2026 cash-only deduction instead.75 Selling, unlike giving the shares, does realize the gain.76 So it adds to your income. The zero rate runs only up to a taxable income amount.75 By my reading, a large gain fills that band. The rest is taxed at the next rate. By my reading, the higher income can also reach the costs that follow AGI (above).
  • Taking the RMD first, then trying a QCD. Do the QCD first. Counts in the year the IRA firm pays it.27
  • Sending a QCD to a donor-advised fund. It doesn’t count as a QCD. A public charity, not a donor-advised fund, supporting organization or most private foundations.3738
  • Counting skipped gain you’d never have paid. If you’d keep the shares until death, that “tax saved” is mostly on paper. Cost generally resets to the value on the day you die.66
  • Giving short-term shares or shares that lost value. Its value on the day you give it, if held more than one year.91011121314
  • Skipping the Form 1040 steps. A QCD needs the right lines on your return. See QCD reporting.

Why the second one is a mistake:

A QCD counts in the year the IRA firm pays it.27 The first dollars out of your IRA each year count toward your RMD.27 By my reading, a taxable withdrawal taken earlier in the year can’t be turned into a QCD later.27

And what short-term shares or shares that lost value are worth as a deduction:

Stock held over a year and given to a public charity is generally deducted at its value that day.9 Held one year or less, the deduction is generally the lower of what you paid or its value.10 Stock worth less than you paid is deducted at its value, and the loss isn’t deductible.11 Traded stock is valued at the average of its high and low prices that day.12 If it didn’t trade that day, you average the nearest trading days before and after.13 That method applies when those trading days fall within a reasonable period of your gift.13 That average is weighted, so the trading day closer to your gift counts for more.14

Sources (76)

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  1. QCDs may come from a traditional IRA, an inherited IRA if the beneficiary is 70½. Only an amount that would otherwise be includible in gross income can be a QCD (§ 408(d)(8)(B)), so a qualified (tax-free) Roth IRA distribution cannot be one. A SEP or SIMPLE IRA is eligible only if it is not "ongoing" — i.e., no employer contribution for the plan year ending with or within the tax year. 401(k), 403(b) and other employer plans are not IRAs and cannot make QCDs.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)means any distribution from an individual retirement plan (other than a plan described in subsection (k) or (p)) Checked 2026-10-09.
    • IRS Notice 2007-7, A-36that is neither an ongoing SEP IRA described in § 408(k) nor an ongoing SIMPLE IRA described in § 408(p). Checked 2026-10-09.
    • IRS Notice 2007-7, A-37is available for distributions from an IRA maintained for the benefit of a beneficiary after the death of the IRA owner if the beneficiary has attained age 70½ Checked 2026-10-09.
    • Instructions for Forms 1099-R and 5498 (current online version, covers 2026), Box 7a, Qualified charitable distributions (QCDs)Code 4 for a QCD from an inherited (death distribution) IRA Checked 2026-10-09.

  2. A SEP or SIMPLE IRA is 'ongoing' (and cannot make a QCD) if an employer contribution is made for the plan year ending with or within the owner's tax year. SIMPLE salary-reduction deferrals are made as elective employer contributions, so money deferred from your own pay into a SIMPLE IRA makes it ongoing.

    • IRS Notice 2007-7, A-36a SEP IRA or a SIMPLE IRA is treated as ongoing if it is maintained under an employer arrangement under which an employer contribution is made for the plan year ending with or within the IRA owner's taxable year in which the charitable contributions would be made. Checked 2026-10-10.
    • 26 U.S.C. § 408 (LII), § 408(p)(2)(A)(i)as elective employer contributions to a simple retirement account on behalf of the employee Checked 2026-10-10.

  3. The IRA trustee must pay the charity directly; a distribution paid to the owner and then donated is not a QCD. (Whether a check the owner writes from an IRA checkbook counts is not addressed by this source — see rw-qb-check-from-ira-a41.)

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(i)which is made directly by the trustee to an organization described in section 170(b)(1)(A) Checked 2026-10-09.
    • IRS Notice 2007-7, A-41will be considered a direct payment by the IRA trustee to the charitable organization for purposes of § 408(d)(8)(B)(i). Checked 2026-10-09.

  4. A QCD is a distribution from an IRA made directly by the IRA trustee to an eligible charity. The statute and IRS guidance say nothing about the payment method (check, wire, electronic transfer) beyond that the trustee must make it directly to the charity. Money paid to the owner first is not paid directly to the charity.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(i)means any distribution from an individual retirement plan (other than a plan described in subsection (k) or (p))— (i) which is made directly by the trustee to an organization described in section 170(b)(1)(A) Checked 2026-10-10.
    • IRS Publication 590-B (2025), Ch. 2, Qualified charitable distributions (QCDs)A QCD is generally a nontaxable distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. Checked 2026-10-10.

  5. IRS Notice 2007-7 treats a check from an IRA, made payable to an eligible charity and delivered by the IRA owner, as a direct payment by the IRA trustee. The notice does not say whether this covers a check the owner writes personally on an IRA checkbook, and no fetched IRS text addresses owner-written IRA checkbook checks.

    • IRS Notice 2007-7, Q-41/A-41If a check from an IRA is made payable to a charitable organization described in § 408(d)(8) and delivered by the IRA owner to the charitable organization, the payment to the charitable organization will be considered a direct payment by the IRA trustee to the charitable organization for purposes of § 408(d)(8)(B)(i). Checked 2026-10-10.

  6. The IRA owner (or beneficiary) must be at least age 70½ on the date the distribution is made. This age was not changed when the RMD starting age rose to 73 (and later 75); QCD eligibility can begin years before RMDs are required.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(ii)which is made on or after the date that the individual for whose benefit the plan is maintained has attained age 70½ Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, Qualified charitable distributions (QCDs)You must be at least age 70½ when the distribution is made. Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 1, Required beginning date FAQYou must begin receiving required minimum distributions by April 1 of the year following the year you reach age 73. Checked 2026-10-09.

  7. A QCD is excluded from gross income and cannot also be claimed as a charitable deduction. Only the portion that would otherwise be taxable can be a QCD; when an IRA has nondeductible basis, the QCD is treated as coming first from the taxable (pre-tax) money, overriding the normal pro-rata rule.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(E)shall not be taken into account in determining the deduction under section 170. Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B), flush languageA distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to subparagraph (A). Checked 2026-10-09.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(D)Notwithstanding section 72, in determining the extent to which a distribution is a qualified charitable distribution Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsIf your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, QCDsYou can't claim a charitable contribution deduction for any QCD not included in your income. Checked 2026-10-09.

  8. Adjusted gross income means, for an individual, gross income minus the deductions listed in § 62(a), so an amount excluded from gross income never enters AGI.

    • 26 U.S.C. § 62 (LII), § 62(a)For purposes of this subtitle, the term "adjusted gross income" means, in the case of an individual, gross income minus the following deductions: Checked 2026-10-12.

  9. Capital gain property is a capital asset that would have produced long-term capital gain if sold at fair market value on the date of the gift; for stock this generally means held more than 1 year.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(C)(iv)the term “ capital gain property ” means, with respect to any contribution, any capital asset the sale of which at its fair market value at the time of the contribution would have resulted in gain which would have been long-term capital gain. Checked 2026-10-09.
    • IRS Publication 526 (2025), Capital Gain PropertyCapital gain property includes capital assets held more than 1 year. Checked 2026-10-09.

  10. For property held 1 year or less, the deduction is reduced by the gain that would not have been long-term, so the deduction is generally the lower of basis or fair market value.

    • 26 U.S.C. § 170 (LII), § 170(e)(1)(A)the amount of gain which would not have been long-term capital gain (determined without regard to section 1221(b)(3) ) if the property contributed had been sold by the taxpayer at its fair market value (determined at the time of such contribution) Checked 2026-10-09.
    • IRS Publication 526 (2025), Ordinary Income Propertycapital assets (defined later, under Capital Gain Property ) held 1 year or less. Checked 2026-10-09.

  11. If donated property is worth less than its basis, the deduction is limited to fair market value and the loss is not deductible.

    • IRS Publication 526 (2025), Giving Property That Has Decreased in ValueIf you contribute property with an FMV that is less than your basis in it, your deduction is limited to its FMV. You can’t claim a deduction for the difference between the property’s basis and its FMV. Checked 2026-10-09.

  12. Publicly traded stock is valued at the average (mean) of the highest and lowest quoted selling prices on the valuation date (date of the gift).

    • IRS Publication 561 (Rev. 12/2025), Stocks and Bonds, Selling prices on valuation datethe FMV of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. Checked 2026-10-09.
    • 26 C.F.R. § 20.2031-2 (LII), § 20.2031-2(b)(1)the mean between the highest and lowest quoted selling prices on the valuation date is the fair market value per share or bond. Checked 2026-10-09.

  13. If there were no sales of the security on the valuation date but there were sales within a reasonable period both before and after it, fair market value is a weighted average of the means between the highest and lowest sales on the nearest date before and the nearest date after the valuation date.

    • 26 C.F.R. § 20.2031-2 (LII), § 20.2031-2(b)(1)If there were no sales on the valuation date but there were sales on dates within a reasonable period both before and after the valuation date, the fair market value is determined by taking a weighted average of the means between the highest and lowest sales on the nearest date before and the nearest date after the valuation date. Checked 2026-10-12.

  14. When there were no sales on the valuation date, the average of the means on the nearest trading date before and the nearest trading date after is weighted inversely by the number of trading days between each selling date and the valuation date, so the nearer trading date carries more weight.

    • 26 C.F.R. § 20.2031-2 (LII), § 20.2031-2(b)(1)The average is to be weighted inversely by the respective numbers of trading days between the selling dates and the valuation date. Checked 2026-10-12.

  15. To deduct charitable contributions in the ordinary way, an individual must itemize on Schedule A.

    • IRS Publication 526 (2025), DeductionsGenerally, to deduct a charitable contribution, you must itemize deductions on Schedule A (Form 1040). Checked 2026-10-09.

  16. No itemized deduction is allowed unless the individual elects to itemize for the year; the taxpayer takes either itemized deductions or the standard deduction.

    • 26 U.S.C. § 63 (LII), § 63(e)(1)Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year. Checked 2026-10-10.

  17. AGI is gross income minus the deductions listed in § 62(a). Itemized deductions are, by definition, the deductions other than those allowable in arriving at AGI, and taxable income is gross income minus the deductions allowed. So an itemized charitable deduction (including one for a gift to a donor-advised fund or of appreciated stock) reduces taxable income but not AGI, and therefore not MAGI measures built on AGI, such as the IRMAA MAGI (AGI plus tax-exempt interest).

    • 26 U.S.C. § 62 (LII), § 62(a)For purposes of this subtitle, the term “adjusted gross income” means, in the case of an individual, gross income minus the following deductions: Checked 2026-10-10.
    • 26 U.S.C. § 63 (LII), § 63(d)For purposes of this subtitle, the term “itemized deductions” means the deductions allowable under this chapter other than— (1) the deductions allowable in arriving at adjusted gross income, and (2) any deduction referred to in any paragraph of subsection (b). Checked 2026-10-10.
    • 26 U.S.C. § 63 (LII), § 63(a)Except as provided in subsection (b), for purposes of this subtitle, the term “taxable income” means gross income minus the deductions allowed by this chapter (other than the standard deduction). Checked 2026-10-10.

  18. Itemized deductions (including the ordinary charitable deduction) are, by definition, deductions other than those allowable in arriving at adjusted gross income, so they reduce taxable income but not AGI.

    • 26 U.S.C. § 63 (LII), § 63(d)the term “ itemized deductions ” means the deductions allowable under this chapter other than— (1) the deductions allowable in arriving at adjusted gross income Checked 2026-10-10.

  19. A QCD counts toward the IRA owner's (or beneficiary's) required minimum distribution for the year.

    • IRS Publication 590-B (2025), Ch. 1, Required minimum distributions noteA qualified charitable distribution will count towards your required minimum distribution. Checked 2026-10-09.
    • IRS Notice 2007-7, A-42The amount distributed in a qualified charitable distribution is an amount distributed from the IRA for purposes of §§ 408(a)(6), 408(b)(3), and 408A(c)(5). Checked 2026-10-09.

  20. Distributing more than the RMD in one year (including through a QCD larger than the RMD) does not create a credit toward future years' RMDs.

    • IRS Publication 590-B (2025), Ch. 1, Miscellaneous Rules for Required Minimum Distributions, More than minimum receivedIf, in any year, you receive more than the required minimum amount for that year, you won't receive credit for the additional amount when determining the minimum required amounts for future years. Checked 2026-10-09.

  21. The RMD applicable age is 73 for an individual who attains age 72 after 2022 and age 73 before 2033, and 75 for an individual who attains age 74 after 2032 (generally, people born in 1960 or later). Read literally, people born in 1959 fit both clauses; the statute's text does not resolve that overlap.

    • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)(I) In the case of an individual who attains age 72 after December 31, 2022 , and age 73 before January 1, 2033 , the applicable age is 73. (II) In the case of an individual who attains age 74 after December 31, 2032 , the applicable age is 75. Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Lines 4a and 4b, More than one distributionYou must start receiving at least a minimum amount from your traditional IRA by April 1 of the year following the year you reach age 73. Checked 2026-10-09.

  22. The 73 applicable age applies to individuals who attain age 72 after December 31, 2022 (born in 1951 or later); 75 applies to those who attain 74 after 2032. So the 73/75 RMD start ages apply to people born in 1951 or later.

    • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)In the case of an individual who attains age 74 after December 31, 2032, the applicable age is 75. Checked 2026-10-10.
    • 26 U.S.C. § 401 (LII), § 401(a)(9)(C)(v)(I)the applicable age is 73 Checked 2026-10-10.

  23. Required distributions to a beneficiary of an inherited account are triggered by the owner's death, not by the beneficiary's own age: where distributions had begun, the remaining interest must continue to be distributed at least as rapidly as before the death, and the life-expectancy exception requires distributions to begin no later than one year after the death. The applicable age of 73 or 75 in § 401(a)(9)(C)(v) sets the required beginning date for the individual for whose benefit the plan is maintained, not for a beneficiary.

    • 26 U.S.C. § 401 (LII), § 401(a)(9)(B)(i)the employee dies before his entire interest has been distributed to him, the remaining portion of such interest will be distributed at least as rapidly as under the method of distributions being used under subparagraph (A)(ii) as of the date of his death Checked 2026-10-11.
    • 26 U.S.C. § 401 (LII), § 401(a)(9)(B)(iii)(III)such distributions begin not later than 1 year after the date of the employee's death or such later date as the Secretary may by regulations prescribe Checked 2026-10-11.
    • IRS Notice 2007-7, A-37is available for distributions from an IRA maintained for the benefit of a beneficiary after the death of the IRA owner if the beneficiary has attained age 70½ Checked 2026-10-09.

  24. The annual QCD exclusion was $100,000 through 2023 and is inflation-indexed for tax years beginning after 2023 (SECURE 2.0 § 307), rounded to the nearest $1,000: $105,000 for 2024, $108,000 for 2025, $111,000 for 2026.

  25. The limit applies per IRA owner. On a joint return each spouse may exclude up to the limit, but only from IRAs that spouse owns; one spouse cannot use the other's unused limit.

    • IRS Publication 590-B (2025), Ch. 2, QCDsIf you file a joint return, your spouse can also have a QCD and exclude up to $108,000. Checked 2026-10-09.
    • IRS Notice 2007-7, A-34For married individuals filing a joint return, the limit is $100,000 per individual IRA owner. Checked 2026-10-09.

  26. The QCD exclusion cap applies to the aggregate amount of qualified charitable distributions with respect to a taxpayer during a taxable year, not per account.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(A)So much of the aggregate amount of qualified charitable distributions with respect to a taxpayer made during any taxable year which does not exceed $100,000 shall not be includible in gross income of such taxpayer for such taxable year. Checked 2026-10-09.

  27. QCDs count for the calendar year in which the trustee makes the distribution (exclusion is per taxable year). Under the RMD rules, the first amounts distributed in a year are treated as the RMD, so a taxable withdrawal taken earlier in the year satisfies the RMD and cannot be converted into a QCD by a later charitable distribution.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(A)made during any taxable year which does not exceed Checked 2026-10-09.
    • 26 CFR § 1.402(c)-2 (LII), § 1.402(c)-2(f)(2)(i) examplethe first $5,000 distributed will be treated as the required minimum distribution and will not be an eligible rollover distribution Checked 2026-10-09.

  28. Beginning in 2026, taxpayers who do not itemize may deduct up to $1,000 ($2,000 joint) of cash gifts to § 170(b)(1)(A) public charities, excluding gifts to supporting organizations and donor-advised funds.

    • 26 U.S.C. § 170 (LII), § 170(p)the deduction under this section shall be equal to the deduction, not in excess of 1,000 ($2,000 in the case of a joint return) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Amendment note, P.L. 119-21 § 70424(a)substituted “$1,000 ($2,000” for “$300 ($600” Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Effective date note, P.L. 119-21 § 70424(b)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  29. The non-itemizer deduction counts only cash contributions made during the year to § 170(b)(1)(A) organizations, not to § 509(a)(3) supporting organizations or for a new or existing donor-advised fund, and is computed without carryovers and without the 0.5% floor.

    • 26 U.S.C. § 170 (LII), § 170(p)which would be determined under this section if the only charitable contributions taken into account in determining such deduction were contributions made in cash during such taxable year (determined without regard to subsections (b)(1)(G)(ii), (b)(1)(I), and (d)(1)) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(p)(1)-(2)to an organization described in section 509(a)(3), or (2) for the establishment of a new, or maintenance of an existing, donor advised fund Checked 2026-10-09.

  30. The § 170(p) deduction for non-itemizers (cash gifts, beginning 2026) does not apply to contributions for the establishment or maintenance of a donor-advised fund, or to § 509(a)(3) supporting organizations.

    • 26 U.S.C. § 170 (LII), § 170(p)(2)(2) for the establishment of a new, or maintenance of an existing, donor advised fund (as defined in section 4966(d)(2) ). Checked 2026-10-09.

  31. For a taxpayer who does not itemize, taxable income is AGI minus the standard deduction and other listed deductions, including the § 170(p) non-itemizer charitable deduction. That deduction therefore reduces taxable income but not AGI.

    • 26 U.S.C. § 63 (LII), § 63(b)the term “ taxable income ” means adjusted gross income , minus— (1) the standard deduction , (2) the deduction for personal exemptions provided in section 151, (3) any deduction provided in section 199A, (4) the deduction provided in section 170(p), Checked 2026-10-09.

  32. Starting in 2026, itemized charitable deductions are allowed only to the extent total contributions exceed 0.5% of the taxpayer's contribution base (AGI). Disallowed amounts may carry forward only in limited circumstances (new § 170(d)(1)(C) — not reviewed).

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer’s contribution base Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), Effective date note, P.L. 119-21 § 70425(c)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  33. The 0.5% floor applies to charitable contributions 'otherwise allowable (without regard to this subparagraph)' as a deduction, i.e., read here as the amount allowable after the percentage-of-AGI limits. This ordering is the reviewer's reading of the statute text; no IRS worked example was located.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer’s contribution base for the taxable year. Checked 2026-10-09.

  34. The 0.5% floor is applied first against 20%-limit capital gain gifts, then 30% capital gain gifts, then 30%-limit (other) gifts, then conservation gifts, then 50% gifts, and last against 60% cash gifts.

    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)(i)first, by taking into account charitable contributions to which subparagraph (D) applies to the extent thereof, Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(I)(vi)sixth, by taking into account charitable contributions to which subparagraph (G) applies to the extent thereof. Checked 2026-10-09.

  35. Starting in 2026, taxpayers in the 37% bracket have itemized deductions (including charitable) reduced by 2/37 of the lesser of total itemized deductions or taxable income above the 37% bracket threshold — effectively capping the tax value of a deduction at 35 cents per dollar. The "35% cap" is a shorthand, not statutory language.

    • 26 U.S.C. § 68 (LII), § 68(a)shall be reduced by 2 ⁄ 37 of the lesser of Checked 2026-10-09.
    • 26 U.S.C. § 68 (LII), Effective date note, P.L. 119-21 § 70111(c)shall apply to taxable years beginning after December 31, 2025 . Checked 2026-10-09.

  36. The § 68 reduction is 2/37 of the lesser of (1) itemized deductions or (2) taxable income, computed before § 68 and increased by itemized deductions, above the start of the 37% bracket. It is applied after every other limitation on itemized deductions (including the 0.5% floor and the AGI percentage limits).

    • 26 U.S.C. § 68 (LII), § 68(a)(2)so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions ) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer. Checked 2026-10-09.
    • 26 U.S.C. § 68 (LII), § 68(b)This section shall be applied after the application of any other limitation on the allowance of any itemized deduction. Checked 2026-10-09.

  37. The recipient must be a § 170(b)(1)(A) organization. Donor-advised funds and § 509(a)(3) supporting organizations are excluded by statute. Private non-operating foundations are excluded because they are not § 170(b)(1)(A) organizations (only foundations described in § 170(b)(1)(F) — operating, pass-through, and pooled-fund — are listed).

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)(i)(other than any organization described in section 509(a)(3) or any fund or account described in section 4966(d)(2)) Checked 2026-10-09.
    • IRS Notice 2007-7, A-35other than supporting organizations described in § 509(a)(3) or donor advised funds that are described in § 4966(d)(2). Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(A)(vii)(vii) a private foundation described in subparagraph (F), Checked 2026-10-09.

  38. A 'charitable contribution' under § 170(c)(2) must go to an organization created or organized in the United States or a possession, or under US, state or DC law. Because a QCD must be one for which a deduction for the entire distribution would be allowable under § 170, a gift paid directly to a foreign organization generally cannot be a QCD.

    • 26 U.S.C. § 170 (LII), § 170(c)(2)(A)(A) created or organized in the United States or in any possession thereof, or under the law of the United States Checked 2026-10-10.
    • 26 U.S.C. § 408 (LII), § 408(d)(8)(C)only if a deduction for the entire distribution would be allowable under section 170 Checked 2026-10-10.

  39. Capital gain property given to most private (nonoperating) foundations is deductible only at basis, except 'qualified appreciated stock' (publicly traded stock that is capital gain property, subject to a 10% ownership limit), which keeps a fair-market-value deduction. Capital gain property gifts to these organizations are limited to 20% of AGI (or, if less, 30% of AGI minus 30%-category capital gain gifts).

    • 26 U.S.C. § 170 (LII), § 170(e)(1)(B)(ii)(ii) to or for the use of a private foundation (as defined in section 509(a) ), other than a private foundation described in subsection (b)(1)(F), Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(A)Subparagraph (B)(ii) of paragraph (1) shall not apply to any contribution of qualified appreciated stock . Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(B)for which (as of the date of the contribution) market quotations are readily available on an established securities market, and (ii) which is capital gain property Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)Donor may not contribute more than 10 percent of stock of corporation Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(b)(1)(D)(i)(I) 20 percent of the taxpayer’s contribution base for the taxable year, or (II) the excess of 30 percent of the taxpayer’s contribution base for the taxable year over the amount of the contributions of capital gain property to which subparagraph (C) applies. Checked 2026-10-09.
    • IRS Publication 526 (2025), Capital Gain Property, ExceptionsThe property (other than qualified appreciated stock) is contributed to certain private nonoperating foundations; Checked 2026-10-09.

  40. The 10 percent limit on qualified appreciated stock is cumulative and aggregated: stock is not qualified appreciated stock to the extent the amount contributed, increased by the aggregate amount of all prior such contributions by the donor of stock in that corporation, exceeds 10 percent in value of all of the corporation's outstanding stock; and the donor is treated as making all contributions made by any member of the donor's family.

    • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)(i)In the case of any donor, the term “qualified appreciated stock” shall not include any stock of a corporation contributed by the donor in a contribution to which paragraph (1)(B)(ii) applies (determined without regard to this paragraph) to the extent that the amount of the stock so contributed (when increased by the aggregate amount of all prior such contributions by the donor of stock in such corporation) exceeds 10 percent (in value) of all of the outstanding stock of such corporation. Checked 2026-10-11.
    • 26 U.S.C. § 170 (LII), § 170(e)(5)(C)(ii)For purposes of clause (i), an individual shall be treated as making all contributions made by any member of his family (as defined in section 267(c)(4)). Checked 2026-10-11.

  41. A contemporaneous written acknowledgment must state the amount of cash contributed, whether the charity provided any goods or services in return, and a description and good-faith estimate of the value of any such goods or services (or a statement that they consisted solely of intangible religious benefits). It is contemporaneous if obtained by the earlier of the date the return is filed or the return's due date including extensions.

    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(i) The amount of cash and a description (but not value) of any property other than cash contributed. (ii) Whether the donee organization provided any goods or services in consideration, in whole or in part, for any property described in clause (i). (iii) A description and good faith estimate of the value of any goods or services referred to in clause (ii) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return. Checked 2026-10-09.

  42. The contemporaneous written acknowledgment for a gift of $250 or more must state the cash amount or describe (not value) property, say whether the charity provided goods or services in return, and estimate their value. It is contemporaneous if obtained by the earlier of the filing date or the extended due date.

    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(i)The amount of cash and a description (but not value) of any property other than cash contributed. Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(ii)Whether the donee organization provided any goods or services in consideration, in whole or in part, for any property described in clause (i). Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(B)(iii)A description and good faith estimate of the value of any goods or services referred to in clause (ii) Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return. Checked 2026-10-09.

  43. A charity receipt (contemporaneous written acknowledgment) counts only if obtained by the earlier of the date the return is filed or the return's due date, including extensions.

    • 26 U.S.C. § 170 (LII), § 170(f)(8)(C)an acknowledgment shall be considered to be contemporaneous if the taxpayer obtains the acknowledgment on or before the earlier of— (i) the date on which the taxpayer files a return for the taxable year in which the contribution was made, or (ii) the due date (including extensions) for filing such return. Checked 2026-10-10.

  44. If total noncash contribution deductions for the year exceed $500, Form 8283 must be attached (Section A for items of $5,000 or less and publicly traded securities; Section B with a qualified appraisal for items over $5,000).

    • IRS Publication 526 (2025), Filing requirements, Form 8283If your total deduction for all noncash contributions for the year is over $500, you must complete Form 8283 and attach it to your Form 1040. Checked 2026-10-09.
    • 26 U.S.C. § 170 (LII), § 170(f)(11)(C)In the case of contributions of property for which a deduction of more than $5,000 is claimed, the requirements of this subparagraph are met if the individual, partnership, or corporation obtains a qualified appraisal of such property Checked 2026-10-09.

  45. Form 8283 is required when the deduction for a noncash gift (or group of similar items) exceeds a dollar threshold set in the instructions; publicly traded securities are reported in Section A regardless of amount (no Section B appraisal); other property over the higher threshold goes in Section B. Basis need not be entered for publicly traded securities held over 12 months unless the basis election is made.

    • Instructions for Form 8283 (Rev. 12/2025), Who Must FileYou must file one or more Forms 8283 if the amount of your deduction for each noncash contribution is more than $500. Checked 2026-10-09.
    • Instructions for Form 8283 (Rev. 12/2025), Specific Instructions, Section A, SecuritiesFor donations of publicly traded securities in any amount, you should only use Section A. Checked 2026-10-09.
    • Instructions for Form 8283 (Rev. 12/2025), Requirement to fully complete Sections A and BFilers reporting a noncash charitable contribution of over $5,000 must fully complete Section B. Checked 2026-10-09.
    • Instructions for Form 8283 (Rev. 12/2025), Section A, Column (g)Do not complete this column for publicly traded securities held more than 12 months, unless you elect to limit your deduction cost basis. See section 170(b)(1)(C)(iii). Checked 2026-10-09.

  46. For contributions of property for which a deduction of more than $5,000 is claimed, the donor generally must obtain a qualified appraisal; the requirement does not apply to readily valued property such as cash and publicly traded securities. Other exceptions exist in the regulations (not reviewed here).

    • 26 U.S.C. § 170 (LII), § 170(f)(11)(C)the requirements of this subparagraph are met if the individual, partnership, or corporation obtains a qualified appraisal Checked 2026-10-10.
    • 26 U.S.C. § 170 (LII), § 170(f)(11)(A)(ii)(I)publicly traded securities (as defined in section 6050L(a)(2)(B)), and any qualified vehicle Checked 2026-10-10.

  47. The qualified appraisal requirement is keyed to the deduction claimed, not the property's value: it applies to contributions of property for which a deduction of more than $5,000 is claimed. In applying that threshold, the property and all similar items of property donated to one or more donees are treated as one property.

    • 26 U.S.C. § 170 (LII), § 170(f)(11)(C)In the case of contributions of property for which a deduction of more than $5,000 is claimed, the requirements of this subparagraph are met if the individual, partnership, or corporation obtains a qualified appraisal of such property and attaches to the return for the taxable year in which such contribution is made such information regarding such property and such appraisal as the Secretary may require. Checked 2026-10-11.
    • 26 U.S.C. § 170 (LII), § 170(f)(11)(F)For purposes of determining thresholds under this paragraph, property and all similar items of property donated to 1 or more donees shall be treated as 1 property. Checked 2026-10-11.

  48. A qualified appraisal is not required for a contribution of nonpublicly traded stock when the deduction claimed is more than $5,000 but not more than $10,000; above $10,000 the general qualified-appraisal requirement applies. The gift is still reported in Section B of Form 8283, which covers property for which a deduction of more than $5,000 per item or group of similar items is claimed.

    • 26 C.F.R. § 1.170A-13 (LII), § 1.170A-13(c)(2)(ii)(B)(1)The contribution of nonpublicly traded stock, if the amount claimed or reported as a deduction for the charitable contribution of such stock is greater than $5,000 but does not exceed $10,000; Checked 2026-10-11.
    • Instructions for Form 8283 (IRS), Which Sections To CompleteUse Section B to report donations of property for which you claimed a deduction of more than $5,000 per item or group of similar items. Checked 2026-10-11.

  49. A distribution is a QCD only to the extent it would be includible in gross income without the QCD exclusion (§ 408(d)(8)(B) flush language). A qualified Roth IRA distribution is not includible, so it cannot be a QCD.

    • 26 U.S.C. § 408(d)(8)(B), § 408(d)(8)(B), flush languageA distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to subparagraph (A). Checked 2026-10-10.

  50. A qualified distribution from a Roth IRA is not includible in gross income (§ 408A(d)(1)).

    • 26 U.S.C. § 408A (LII), § 408A(d)(1)(A)Any qualified distribution from a Roth IRA shall not be includible in gross income. Checked 2026-10-09.

  51. The excludable QCD amount is reduced by the total deductible IRA contributions made for years ending on or after the owner reached 70½, less amounts already used to reduce prior years' QCDs (effective for tax years after 2019, SECURE Act). The reduced amount is taxable but may be deductible as a charitable contribution if itemizing.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(A), second sentencethe aggregate amount of deductions allowed to the taxpayer under section 219 for all taxable years ending on or after the date the taxpayer attains age 70½ Checked 2026-10-09.
    • IRS Publication 590-B (2025), Ch. 2, Offset of QCDs by amounts contributed after age 70½Beginning in tax years after December 31, 2019, the amount of QCDs that you can exclude from income is reduced by the excess of the aggregate amount of IRA contributions you deducted Checked 2026-10-09.

  52. 2026 standard deduction: $32,200 married filing jointly, $16,100 single or married filing separately, $24,150 head of household. Additional amount for age 65+ or blind: $1,650 per qualifying person if married, $2,050 if unmarried and not a surviving spouse. (2025 under OBBBA: $31,500 / $15,750 / $23,625.)

  53. Medicare IRMAA is determined from MAGI, defined as AGI plus tax-exempt interest, generally from the tax return two years before the premium year (2026 premiums generally use 2024 returns).

  54. IRMAA is based on modified AGI = AGI (Form 1040 line 11) plus tax-exempt interest, using the most recent tax data IRS can provide: generally the return from two years before the premium year (2026 premiums generally use 2024 returns), but not more than three years prior.

    • SSA POMS HI 01101.010 (12/02/2025), A.1the beneficiary’s adjusted gross income (AGI) (found on line 11 of the Internal Revenue Service (IRS) tax filing form 1040), plus • tax-exempt interest income (line 2a of IRS Form 1040). Checked 2026-10-09.
    • SSA POMS HI 01101.010 (12/02/2025), A.2Generally, the information is from two years prior to the year for which the premium is being determined, but not more than three years prior. For example, 2026 premiums are generally based on 2024 tax return information. Checked 2026-10-09.

  55. IRMAA is assessed per Medicare beneficiary: each enrolled beneficiary whose MAGI is above the threshold for their tax filing status pays an IRMAA; the joint-filer threshold is a single figure for the joint return.

    • SSA POMS HI 01101.001, A.1and have modified adjusted gross income (MAGI), (see HI 01101.010 ) above the threshold for their tax filing status pay an IRMAA in addition to the monthly premium. Checked 2026-10-09.
    • SSA POMS HI 01101.010, BMarried, filing jointly $194,000 $206,000 $212,000 $218,000 Checked 2026-10-09.

  56. For 2025 through 2028, each taxpayer (and spouse on a joint return) age 65+ by year end gets an extra $6,000 deduction, available whether or not they itemize, reduced by 6% of modified AGI above $75,000 ($150,000 joint). Married couples must file jointly; a valid SSN is required.

    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(i)In the case of a taxable year beginning before January 1, 2029 , there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual Checked 2026-10-09.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iii)(I)shall be reduced (but not below zero) by 6 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Schedule 1-A, Part VYou can claim this deduction whether you claim the standard deduction or itemize deductions Checked 2026-10-09.
    • Instructions for Form 1040 (2025), Schedule 1-A, Part VIf you are married, you must file a joint return with your spouse to claim this deduction. Checked 2026-10-09.

  57. On Schedule 1-A, the 6% phaseout of the senior deduction is computed once from modified AGI and subtracted from each qualifying spouse's $6,000 separately; the two reduced amounts are then added. On a joint return, each $1,000 of MAGI above the threshold therefore reduces the couple's combined senior deduction by $120.

  58. The senior deduction's 'qualified individual' is the taxpayer (and, on a joint return, the spouse) who has attained age 65 before the close of the taxable year; the qualified individual's Social Security number must be on the return; married individuals must file jointly; the phaseout uses AGI increased only by foreign-income exclusions (§§ 911, 931, 933), so income excluded from gross income, such as a QCD, does not count.

    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(ii)the taxpayer, if the taxpayer has attained age 65 before the close of the taxable year, and (II) in the case of a joint return, the taxpayer’s spouse, if such spouse has attained age 65 before the close of the taxable year. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iii)(II)the term “ modified adjusted gross income ” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(iv)(I)Clause (i) shall not apply with respect to a qualified individual unless the taxpayer includes such qualified individual ’s social security number on the return of tax for the taxable year. Checked 2026-10-10.
    • 26 U.S.C. § 151 (LII), § 151(d)(5)(C)(v)this subparagraph shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year. Checked 2026-10-10.

  59. To test whether Social Security benefits are taxable, compare one-half of benefits plus all other income (including tax-exempt interest) with a base amount for the filing status; above it, part of benefits may be taxable, generally up to 50%, and up to 85% above a second, higher amount. The base amounts are fixed dollar figures (not inflation-indexed in the publication).

    • IRS Publication 915 (2025), Are Any of Your Benefits Taxable?compare the base amount (explained later) for your filing status with the total of: One-half of your benefits; plus All your other income, including tax-exempt interest. Checked 2026-10-09.
    • IRS Publication 915 (2025), Base amountYour base amount is: $25,000 if you are single, head of household, or qualifying surviving spouse; Checked 2026-10-09.
    • IRS Publication 915 (2025), Maximum taxable partGenerally, up to 50% of your benefits will be taxable. However, up to 85% of your benefits can be taxable if either of the following situations applies to you. The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Checked 2026-10-09.

  60. Whether, and how much of, Social Security benefits are taxable depends on modified adjusted gross income plus one-half of benefits compared with a base amount; that modified AGI starts from adjusted gross income (increased by tax-exempt interest). Income excluded from AGI, such as a QCD, therefore does not enter the test.

    • 26 U.S.C. § 86 (LII), § 86(b)(1)the modified adjusted gross income of the taxpayer for the taxable year, plus (ii) one-half of the social security benefits received during the taxable year, exceeds (B) the base amount Checked 2026-10-09.
    • 26 U.S.C. § 86 (LII), § 86(b)(2)increased by the amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax. Checked 2026-10-09.

  61. The 3.8% net investment income tax applies to the lesser of net investment income (which includes net gain from disposing of property) or modified AGI above a threshold. Gain that is never realized is not net gain — the avoidance is an inference.

    • 26 U.S.C. § 1411 (LII), § 1411(a)(1)a tax equal to 3.8 percent of the lesser of— (A) net investment income for such taxable year, or (B) the excess (if any) of— (i) the modified adjusted gross income for such taxable year, over (ii) the threshold amount . Checked 2026-10-09.
    • 26 U.S.C. § 1411 (LII), § 1411(c)(1)(A)(iii)net gain (to the extent taken into account in computing taxable income) attributable to the disposition of property Checked 2026-10-09.

  62. Under Rev. Rul. 78-197 (in which the IRS announced it would follow Palmer v. Commissioner, 62 T.C. 684 (1974)), the IRS treats the proceeds of a sale or redemption of donated stock as the donor's income only if the charity is legally bound, or can be compelled, to give up the shares at the time of the gift. A charity that is merely expected to sell is not enough; a charity that is bound to sell shifts the gain back to the donor (assignment of income).

  63. Contributions above the AGI limits carry over for up to 5 years (15 for qualified conservation contributions) and generally keep the same percentage limit in the carryover year.

    • IRS Publication 526 (2025), Carryoversyou may be able to deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Checked 2026-10-09.
    • IRS Publication 526 (2025), CarryoversGenerally, contributions you carry over are subject to the same percentage limits in the year to which they are carried as they were in the year of the contribution. Checked 2026-10-09.

  64. Within each category, current-year contributions are deducted before carryovers, and older carryovers are used before newer ones.

    • IRS Publication 526 (2025), CarryoversFor each category of contributions, you deduct carryover contributions only after deducting all allowable contributions in that category for the current year. If you have carryovers from 2 or more prior years, use the carryover from the earlier year first. Checked 2026-10-09.

  65. Qualified conservation contributions over their AGI limit carry over for 15 succeeding years, not 5.

    • 26 U.S.C. § 170(b)(1)(E)(ii), § 170(b)(1)(E)(ii)such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 15 succeeding years in order of time. Checked 2026-10-10.

  66. Heirs generally take a basis equal to fair market value at the date of death, and inherited property sold within a year is treated as held more than 1 year.

    • 26 U.S.C. § 1014 (LII), § 1014(a)(1)(1) the fair market value of the property at the date of the decedent’s death, Checked 2026-10-09.
    • 26 U.S.C. § 1223 (LII), § 1223(9)such property is sold or otherwise disposed of by such person within 1 year after the decedent’s death, then such person shall be considered to have held such property for more than 1 year. Checked 2026-10-09.

  67. Pre-tax retirement accounts are income in respect of a decedent: the beneficiary who receives the right to the money includes it in gross income when received, and IRD gets no basis step-up at death.

    • 26 U.S.C. § 691 (LII), § 691(a)(1)shall be included in the gross income, for the taxable year when received, of: Checked 2026-10-09.
    • 26 U.S.C. § 691 (LII), § 691(a)(1)(B)the person who, by reason of the death of the decedent, acquires the right to receive the amount Checked 2026-10-09.
    • 26 U.S.C. § 1014 (LII), § 1014(c)This section shall not apply to property which constitutes a right to receive an item of income in respect of a decedent under section 691. Checked 2026-10-09.

  68. Taxable distributions from a traditional IRA are taxed as ordinary income; capital gain treatment does not apply, regardless of what the investments inside the IRA gained.

    • IRS Publication 590-B (2025), Ch. 1, Are Distributions Taxable? — Ordinary incomeDistributions from traditional IRAs that you include in income are taxed as ordinary income. No special treatment. In figuring your tax, you can't use the 10-year tax option or capital gain treatment that applies to lump-sum distributions from qualified retirement plans. Checked 2026-10-10.

  69. Neither the QCD statute nor fetched IRS guidance limits a QCD to cash; the statute covers 'any distribution' from an IRA that meets the conditions. The Form 1099-R instructions provide a code combination (Y with K) for a QCD of traditional IRA assets that do not have a readily available fair market value, so the IRS reporting rules contemplate non-cash QCDs.

    • 26 U.S.C. § 408 (LII), § 408(d)(8)(B)means any distribution from an individual retirement plan Checked 2026-10-10.
    • Instructions for Forms 1099-R and 5498 (2026), Box 7a, Qualified charitable distributions (QCDs)Code K for a QCD reporting distributions of traditional IRA assets not having a readily available FMV that are either from non-inherited or inherited IRAs. Checked 2026-10-10.

  70. A donor-advised fund (§ 4966(d)(2)) is a fund or account that is separately identified by reference to a donor's contributions, is owned and controlled by a sponsoring organization, and over which the donor (or the donor's appointee) has or reasonably expects to have advisory privileges over distributions or investments because of being a donor. Once the donor contributes, the sponsoring organization has legal control.

    • 26 U.S.C. § 4966 (LII), § 4966(d)(2)(A)(i)which is separately identified by reference to contributions of a donor or donors, Checked 2026-10-09.
    • 26 U.S.C. § 4966 (LII), § 4966(d)(2)(A)(iii)has, or reasonably expects to have, advisory privileges with respect to the distribution or investment of amounts held in such fund or account by reason of the donor’s status as a donor. Checked 2026-10-09.
    • IRS: Donor-advised funds, Overview paragraphOnce the donor makes the contribution, the organization has legal control over it. Checked 2026-10-09.

  71. A DAF's sponsoring organization must be a § 170(c) organization that is not a private foundation. Because the sponsor is a public charity, a contribution to a DAF is a gift to a public charity for deduction-limit purposes (inference from the definition plus § 170(b)(1)(A)).

    • 26 U.S.C. § 4966 (LII), § 4966(d)(1)(B)is not a private foundation (as defined in section 509(a) ), and Checked 2026-10-09.
    • IRS: Donor-advised funds, Overview paragraphmaintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization Checked 2026-10-09.

  72. A contribution to a DAF is deductible only if the sponsor is not a war veterans' organization, fraternal society, or nonprofit cemetery company (or certain type III supporting organizations) and the donor obtains a contemporaneous written acknowledgment that the sponsor has exclusive legal control over the contributed assets.

    • 26 U.S.C. § 170 (LII), § 170(f)(18)(B)the taxpayer obtains a contemporaneous written acknowledgment (determined under rules similar to the rules of paragraph (8)(C)) from the sponsoring organization (as so defined) of such donor advised fund that such organization has exclusive legal control over the assets contributed. Checked 2026-10-09.
    • IRS Publication 526 (2025), Contributions to Donor-Advised FundsThe qualified organization that sponsors the fund is a war veterans’ organization, a fraternal society, or a nonprofit cemetery company; or Checked 2026-10-09.

  73. Any distribution from a donor-advised fund to a natural person is a 'taxable distribution' under § 4966(c)(1)(A), and § 4966(a)(1) imposes a 20% tax on the sponsoring organization for each taxable distribution. In practice, DAF grants go to charities, not to individuals (including family members).

    • 26 U.S.C. § 4966 (LII), § 4966(c)(1)(A)The term “ taxable distribution ” means any distribution from a donor advised fund— (A) to any natural person, Checked 2026-10-10.
    • 26 U.S.C. § 4966 (LII), § 4966(a)(1)There is hereby imposed on each taxable distribution a tax equal to 20 percent of the amount thereof. The tax imposed by this paragraph shall be paid by the sponsoring organization with respect to the donor advised fund. Checked 2026-10-10.

  74. 2026 federal income tax brackets (ordinary income). Married filing jointly: 10% to $24,800; 12% to $100,800; 22% to $211,400; 24% to $403,550; 32% to $512,450; 35% to $768,700; 37% above. Single: 10% to $12,400; 12% to $50,400; 22% to $105,700; 24% to $201,775; 32% to $256,225; 35% to $640,600; 37% above.

    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Not over $24,800 10% of the taxable income Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $24,800 but not over $100,800 $2,480 plus 12% of the excess over $24,800 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $100,800 but not over $211,400 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $211,400 but not over $403,550 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $403,550 but not over $512,450 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 1 (MFJ)Over $512,450 but not over $768,700 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Not over $12,400 10% of the taxable income Over $12,400 but not over $50,400 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $50,400 but not over $105,700 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $105,700 but not over $201,775 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $201,775 but not over $256,225 Checked 2026-10-09.
    • Rev. Proc. 2025-32, § 3.01 Table 3 (single)Over $256,225 but not over $640,600 Checked 2026-10-09.

  75. 2026 long-term capital gain rate thresholds (taxable income): 0% up to $98,900 joint / $49,450 single; 15% up to $613,700 joint / $545,500 single; 20% above.

    • Rev. Proc. 2025-32, § 3.03 Maximum Capital Gains RateMarried Individuals Filing Joint Returns and Surviving Spouse $98,900 $613,700 Checked 2026-10-10.
    • Rev. Proc. 2025-32, § 3.03 Maximum Capital Gains RateAll Other Individuals $49,450 $545,500 Checked 2026-10-10.

  76. Gain is measured by the amount realized on a sale or other disposition over adjusted basis, so a donor who gives appreciated shares to charity instead of selling them realizes nothing and reports no capital gain.

    • 26 U.S.C. § 1001 (LII), § 1001(a)The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized. Checked 2026-10-11.