A donor transfers appreciated stock worth $50,000 (basis $10,000) to a Charitable Remainder Unitrust (CRUT). What is the primary tax advantage of this approach versus selling the stock first?
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A
The donor avoids immediate capital gains tax on the full $40,000 appreciation
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B
The donor receives a 100% income tax deduction equal to the full $50,000
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C
The trust pays no income tax on the sale proceeds
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D
The donor can reclaim the principal after 10 years