Avoid capital gains and maximize a charitable contribution deduction by donating appreciated property.

Assuming you itemize deductions, you can deduct the property’s current fair market value (not what you paid for it) and you don’t have to report any capital gains, creating additional tax savings. That $1,000 stock you only paid $200 for 5 years ago can cut your taxable income by $1,000 and you don’t pay any tax on the $800 appreciation.