In the world of investing, the tax implications of selling assets can be significant. Capital gains taxes are assessed based on the length of time you've held an investment. For short-term investments (held less than a year), the IRS limits your deduction to the fair market value of the asset minus the capital gain. This often makes it more sensible to sell the asset and donate the after-tax proceeds rather than donating the asset itself. However, for long-term investments (held more than a year), the benefits of donation are substantial. The IRS considers the donation value to be the fair market value of the asset at the time of donation, not the value you paid for it. If you itemize your tax deductions, this amount can be significant. Let's consider a hypothetical scenario. A couple earning $250,000 purchased 500 shares of Apple stock in January 2021 for $130 per share, a total purchase of $65,000, and then decided to sell it in February 2022 for $175 per share, or a total of $87,500. They would owe a total of $5,468 in taxes on a reported gain of $22,500, leaving them with an after-tax gain of $17,032. But what if they donated the proceeds of the sale to charity? Their total income tax rate would be 33.3%. With a donation of the full $87,500, they could potentially save $29,138 in taxes. This is where Daffy comes in. As a not-for-profit community built around a modern Donor-Advised Fund (DAF), Daffy provides a platform for individuals to donate their assets, receive an immediate tax deduction, and then recommend grants to their favorite charities over time. By donating through Daffy, you can avoid capital gains taxes, receive a tax deduction, and support the causes you care about most. It's a win-win situation. So, if you need cost basis information in the future, consider Daffy as your go-to option. Not only will you be making a positive impact on the causes you care about, but you'll also be making a smart financial decision. For more information on how to avoid paying capital gains taxes, visit [Daffy](https://www.daffy.org/answers/how-to-avoid-paying-capital-gains-taxes).