Success stories

Tax Benefits for the Charitably Inclined

The Challenge

Jason, like many of our Bay Area clients, is seated in the highest tax bracket based on his annual income which includes a large portion of RSUs. Having been an Nvidia employee since 2016, Jason has now vested a significant number of RSUs – much of which has appreciated 500%. Jason is charitably inclined, devoting time and money to local charitable organizations. While discussing his goals and financial future with his new advisory team at Summitry, Jason was surprised to learn that a tax strategy could make his dollars reach much further.

The Goal

Jason’s income has steadily increased in recent years, and so has his tax liability, particularly with strong appreciation in his vested RSUs. Jason’s advisory team was determined to create a holistic plan that allowed Jason to lower his overall tax exposure while maintaining his charitable contributions.

The Solution

Jason’s Summitry advisory team established a Donor Advised Fund (“DAF”) on his behalf and transferred his lowest cost basis Nvidia shares, helping Jason fund the causes he is passionate about, while doing so in a tax efficient manner. Not only does Jason forgo paying capital gains at 23.8% Federal and 13.3% State levels, he also received a 2020 tax deduction in the amount of the market value at the time of transfer to the DAF.

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Investing with Your Values

*Actual client situation with the names changed for privacy. Please see disclaimer below.

This case study contains an actual client situation with the names changed in which Summitry has provided financial planning advice. There is no guarantee that similar results will be achieved for other financial planning clients. It is unknown if the clients on which this case study is based approved or disapproved of Summitry's services. Summitry's advice is based each client's specific situation and contains multiple factors. Summitry may make recommendations to one client that may differ from the advice given to another client.

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Aaron Szager

Advisor Group Manager