Appreciated Stock Gift Calculator — 2026

See the exact dollar difference between gifting appreciated stock directly to a charity or DAF vs. selling first and donating cash. For long-term holdings, direct gifting almost always wins — often saving 1.2–1.4× the capital gains tax you'd otherwise pay.

What each scenario models

• Scenario A — Gift stock directly to a public charity or DAF: No capital gains tax is triggered. For long-term holdings (>1 year), your deduction equals fair market value, subject to a 30% AGI limit with 5-year carryover for any excess. For short-term holdings, the deduction is limited to cost basis (IRC §170(e)(1)(A)).
• Scenario B — Sell stock, then donate cash: You pay long-term or short-term capital gains tax on the gain, then donate the after-tax proceeds. Cash donations carry a 60% AGI limit — more room for the deduction, but the capital gains cost is real and immediate.

The advantage of Scenario A = capital gains tax avoided + the additional deduction value from giving a larger amount × your marginal deduction rate. For most HNW donors with large long-term positions, this difference is material.

2026 tax values used

• Long-term capital gains rates — IRS Rev. Proc. 2025-32:¹
  • 0%: up to $48,350 (single) / $96,700 (MFJ)
  • 15%: $48,351–$533,400 (single) / $96,701–$600,050 (MFJ)
  • 20%: above $533,400 (single) / $600,050 (MFJ)
• Net Investment Income Tax (NIIT): 3.8% on investment income when MAGI exceeds $200,000 (single) / $250,000 (MFJ) — IRC §1411. These thresholds are not inflation-indexed.³
• OBBBA 0.5% AGI floor: The first 0.5% of AGI in charitable contributions is disallowed as a deduction for all itemizers, effective 2026.²
• OBBBA 35% deduction cap: Taxpayers in the 37% bracket (income above $640,600 single / $768,600 MFJ per IRS Rev. Proc. 2025-32) can claim no more than 35 cents per dollar of charitable deduction benefit — down from 37 cents.²
• AGI limits: 30% of AGI for long-term appreciated property (IRC §170(b)(1)(C)); 60% for cash gifts (IRC §170(b)(1)(A)). Excess carries forward up to 5 years (IRC §170(d)(1)).⁴

The AGI cap and 5-year carryover

The 30% AGI cap for long-term appreciated stock means large gifts relative to income can't be fully deducted in year one. The unused deduction carries forward at up to 30% of AGI per year for five additional years. This is often misunderstood as a cost — it isn't. The capital gains tax is avoided entirely in year one regardless. The deduction is simply spread over multiple years.

Cash donations carry a 60% AGI limit, giving more room in year one. But this doesn't outweigh the capital gains cost of Scenario B. The capital gains tax you pay is permanent — it doesn't carry forward.

Example: You gift $1,000,000 of long-term appreciated stock when your AGI is $700,000. You avoid ~$238,000 in capital gains tax (23.8% rate) immediately. You can deduct $210,000 (30% of AGI) in year one, then carry $790,000 forward across the next five years — capturing the full million-dollar deduction over time.

Sources

1. IRS Revenue Procedure 2025-32 — 2026 inflation adjustments including LTCG thresholds, ordinary income brackets, and standard deductions
2. Fidelity Charitable — OBBBA impact on charitable deductions (0.5% floor, 35% cap for 37% bracket filers)
3. IRS — Net Investment Income Tax Q&A (IRC §1411, 3.8% rate, $200K/$250K MAGI thresholds)
4. IRS — Charitable Contribution Deductions (§170 AGI limits, 5-year carryover rules)

Tax values verified May 2026 against IRS Rev. Proc. 2025-32 and OBBBA guidance. This calculator provides directional estimates — your outcome depends on your complete tax picture including state taxes, AMT, and other deductions. Consult a fee-only tax advisor for advice specific to your situation.