LEARN | Benefits of Donating Concentrated Stock

*This hypothetical illustration is provided solely to demonstrate the long-term effect of applying mathematical principles to an assumed set of facts. Actual results will differ and could be substantially different. Have your financial advisor contact Eaton Vance Distributors, Inc. to obtain an estimated federal income tax deduction based on your specific situation. Note: A state income tax deduction also may be available.

Assumes top 2022 tax rate for families with income over $647,850 ($539,900 for single taxpayers). The maximum federal long-term capital gains rate applied toward the potential recognized gain of $80,000 is 23.8% (includes the 3.8% Medicare surtax). This illustration does not include any potential state or local tax consequences.

Under federal income tax law, certain limitations apply to the amount of the charitable deduction a taxpayer may claim in any given year. Generally, cash gifts can be deducted up to 60% of your “contribution base” (in general, adjusted gross income (AGI)), and appreciated securities held by you for more than one year are deductible up to 30% of AGI. Special rules govern the interplay of these limits. Any excess amount may be carried forward and deducted, subject to the applicable limitations, in the five-year period after the year of contribution. Your ability to deduct itemized deductions may be subject to certain other limitations.