Charitable Contributions not only make you feel great but also are a great way to lower your tax bill. Charitable contributions may sometimes be in appreciated stock or property, as long as you’ve owned the asset for more than a year. In the case of appreciated stock or property, you can get a double tax benefit from the donation: You can deduct the property’s market value on the date of the gift and you avoid paying capital gains tax on the built-up appreciation. By the way, the tax rate on dividends and capital gains increased to 20% from 15% for taxable incomes over $450,000 ($400,000 for single filers).