Giving Short-Term Capital Gains in 2021

Normally short-term capital gains don’t provide any tax-efficient charitable opportunities, but in 2021 they do! In this episode, Bob and Bryan review a remarkable year of investing and talk about the opportunities for giving short-term capital gains under the provisions in the CARES Act. Don’t miss it. This will not happen in 2022!

While markets took a deep cut at the beginning of the Coronavirus outbreak in the U.S. last year (fig. 1), stocks bounced back for a remarkably strong 2020 (fig. 2).

fig. 1: Stock Market Performance February 20, 2020 – March 20, 2020

fig. 2: Market performance April 2020 – February 2021

For many investors, the extension of the 2020 CARES Act is a welcome legislative decision. Much to Bob’s surprise, the tax advantages that generous investors enjoyed in 2020 can be utilized again in 2021. To give a better idea of how to take advantage of the rules around short-term capital gains taxes in the CARES Act, Bob and Bryan walk through an investing scenario.

Finally, Bob surprises everyone with a jazz vocal performance that rivals Old Blue-Eyes himself.