"I paid $95,000 in capital gains tax just to make a $500,000 donation."
What If You Could Give More and Keep More at the Same Time?
Enter your appreciated asset value and see what happens when you donate it through a Charitable Remainder Trust instead of selling it first.
Sell and Donate Cash vs. Donate Through a CRT
Sell First, Then Donate
Asset value$500,000
Capital gains tax (23.8%)-$95,200
Net donated to charity$404,800
Tax deduction value (37%)$149,776
Income from donation$0/year
20-year income total$0
Donate via CRT
Asset donated$500,000
Capital gains tax$0
Charitable deduction$175,000
Tax savings on deduction (37%)$64,750
Annual CRT income$30,000/year
20-year income total$600,000
Total Financial Benefit of the CRT vs Selling
$760K
capital gains avoided + deduction savings + 20 years of income
Based on 23.8% capital gains rate (20% federal + 3.8% Medicare surtax), 37% income tax rate, and IRS Section 7520 rate for charitable deduction calculation. CRT income continues for your lifetime. Actual deduction depends on age, payout rate, and current Section 7520 rate.
With a CRT, your family benefits from an extra $760K
Your capital gains tax: $0 (instead of $95,200). Your tax deduction saves you $64,750 this year. And you receive $30,000/year for life. The charity still receives your generous gift. Same generosity. Radically different outcome.
What's your next move?
See how strategic giving fits into your complete tax strategy.
A Taylored Tax client eliminated $1.4 million in capital gains taxes through a CRT. Savings on this lever: $25,000/year. Running total: $825,000 across 6 levers.
Terrence Okeke Taylor, EA & Al Darnell, Jr (BiG Al), EA, MBA · Enrolled Agents (IRS Licensed)
This calculator provides estimates for educational purposes only. The charitable deduction is approximated using a simplified model based on age and payout rate. Actual CRT deductions are calculated using the IRS Section 7520 rate, which changes monthly. CRT income is subject to the trust's investment performance. Capital gains rate assumes 20% federal + 3.8% Net Investment Income Tax = 23.8%. Income tax rate assumed at 37%. Consult a qualified tax professional for your specific situation.
