The 10 Best-Performing Stocks: February 2024 - The Giving Block
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The 10 Best-Performing Stocks: February 2024

by | Feb 12, 2024

The stock market outperformed many experts’ predictions in 2023. Notably, the S&P 500 closed out the year up more than 25%, with sectors like technology and communication services enjoying big rallies.

Looking ahead to 2024, it’s anyone’s guess what the stock market will do but some financial services companies are forecasting modest returns and sluggish economic growth. (The crypto market, on the other hand, may be poised for big gains.)

>> You invested in stocks to build wealth. Learn how to donate appreciated stocks to reduce your tax burden.

How Are Stocks Held for 1 Year or More Taxed?

When you realize gains on appreciated stocks held for at least one year, those gains will be subject to long-term capital gains taxes. These tax rates vary depending on factors like your annual income and which state you live in.

For example, if you purchased $5,000 worth of SLNO stocks a year ago, today these shares would be worth approximately $80,0000. That’s a total of $75,000 in realized gains. If you chose to sell your shares and your federal capital gains tax rate was 20%, you could be liable for paying roughly $15,000 in taxes on those gains. (And that’s just at the federal level.)

For example, if you purchased $5,000 worth of SLNO stocks a year ago, today these shares would be worth approximately $118,325. Based on this investment alone, you could expect to owe taxes on $113,325 in realized gains if sold. If your federal capital gains tax rate was 20%, you could be liable for paying roughly $22,665 in taxes on those gains. (And that’s just at the federal level.)

Tip: Donating stock can help reduce your tax burden

When you hold stocks that have appreciated in value since the date of purchase, you can keep holding to see if they’ll increase in value further. If you’re less inclined to hold, you have a couple of alternatives, including:

  • Selling some (or all) your shares of the stock and taking the gains in cash
  • Selling the stock, then reinvesting the gains into other assets
  • Donating the stock to your favorite charity

Donating appreciated stock is a tax-efficient way to give back to charity, because those donated assets are not subject to capital gains taxes. When you review your portfolio, you may wish to donate a portion of your stock holdings to charity to reduce your overall tax liability.

>> Estimate your tax savings from a charitable stock donation.

Find a Charity That Accepts Stock Donations

Donating stock isn’t the slow, frustrating bureaucratic process that it once was. Today you can donate stock shares via a simple digital form in just a few clicks.

Investors that wish to make tax-efficient stock donations to registered charities can browse thousands of organizations listed on The Giving Block’s donation marketplace.

>> Discover a cause to support today.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.

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