Facilitate donation and gifting of investments The tax laws need to be changed to allow donation and gifting of securities, such as listed stocks and mutual funds, without tax implications. The value of the gift or donation could be calculated as the fair market value of the securities on the date of actual transfer. This would give the donor or gift giver two benefits: exemption from capital gains tax on the securities; and tax-deduction on the amount from their income. Right now, the process of gifting or donating an amount invested in securities involves liquidating them and transferring the cash amount. The process leads to the investor incurring capital gains tax. Changing this would not only promote the practice of gifting investments, but also allow people to donate to worthy charities without worrying about taxability
