06 Nov Can I buy a car by trading appreciated securities?
Q. I know that I can donate appreciated securities to a charitable organization to avoid the tax hit I would incur by selling the appreciated securities and donating the resulting cash. But what if I want to make a major purchase like a car? Can I do the same kind of transaction?
— Hoping to save
A. You’re correct that you can donate appreciated investments directly to a charity.
But no, you can’t do what you’re suggesting.
“You are not able to purchase a car directly from your IRA and avoid taxes,” said Jody D’Agostini, a certified financial planner with AXA Advisors/The Falcon Financial Group in Morristown.
Nor can you gift securities to a car dealer, or any other business, in exchange for a product to avoid the taxes that would be due when you sold the investment.
Nice try, though!
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This story was originally published on Nov. 6, 2019.
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