Giving, selling and converting before December 31, 2026
Three timing choices matter most this year: when you give to charity, when you sell investments and when you convert to a Roth IRA. We explain the 2026 rules and the traps.
Prepared by Prem Tax and Accounting Corp. Last reviewed November 6, 2026. Figures as of November 6, 2026.
Timing is the one thing you can still change before the year ends. For 2026, three areas matter most: gifts to charity, stock gains and losses, and Roth conversions or IRA gifts. We sort the choices with the Two-Pile Year-End Sort. The full calendar is in our year-end checklist.
- 2026 starts a $1,000 ($2,000 joint) charity deduction for non-itemizers, a 0.5 percent floor for itemizers and a 35 percent value limit, all with no end date (Public Law 119-21).
- A stock sale on Thursday, December 31 counts in 2026, because the trade date sets the year.
- The 0 percent gain rate reaches taxable income of $98,900 joint and $49,450 single.
- A Roth conversion done in 2026 cannot be undone.
The rules in plain words
| Rule | What it means | Source |
|---|---|---|
| Non-itemizer deduction | Up to $1,000 ($2,000 joint) of cash gifts to public charities. Donor-advised funds do not count | Public Law 119-21, sec. 70424 |
| 0.5 percent floor | Itemizers deduct gifts only above 0.5% of adjusted gross income | Public Law 119-21, sec. 70425 |
| 35 percent value limit | If taxable income before itemized deductions tops $768,700 joint ($640,600 single), each itemized dollar saves at most about 35 cents | Public Law 119-21, sec. 70111 |
| Wash sale | The loss is disallowed if you rebuy within 30 days before or after, including by your spouse or in an IRA. It usually adds to the new shares' basis, but not in an IRA | Pub. 550 |
An invented example
A married couple under 65 has $300,000 of income in 2026 and 2027, $14,000 of state and local taxes, $9,000 of mortgage interest and $12,000 of yearly cash gifts. The 0.5 percent floor is $1,500.
| Plan | 2026 deductions | 2027 deductions | Two-year total |
|---|---|---|---|
| Give $12,000 each year | $34,200 | $35,200 | $69,400 |
| Give $24,000 in 2026 to a donor-advised fund | $45,500 | $33,200 | $78,700 |
The second plan adds $9,300 of deductions. With both years in the 24 percent bracket, that saves $2,232.
What people often consider
- Bunching two years of gifts into one, often through a donor-advised fund. The trap: those gifts do not earn the $1,000 or $2,000 deduction.
- Selling a losing investment in a taxable account. The trap: reinvested dividends and IRA purchases can trigger the wash sale rule.
- Filling a low bracket with a Roth conversion. The trap: more income can raise Medicare premiums two years later and shrink the senior deduction.
Ask your adviser before you act.
The Two-Pile Year-End Sort
- Write each possible move on a card and sort the cards into two piles: finish by December 31, or wait for 2027.
- Flag any sale with a repurchase planned within 30 days.
- Flag any move that raises 2026 income.
- Have your adviser review both piles by mid-December.
Common questions
Does a donor-advised fund gift earn the $1,000 or $2,000 deduction?
No. Only cash gifts to public charities count.
Can I undo a Roth conversion?
No. Conversions made after 2017 cannot be recharacterized, so decide before December 31.
How much can I give straight from my IRA?
Up to $111,000 per person in 2026 if you are 70 1/2 or older. It counts toward your required minimum distribution.
Official sources
- Public Law 119-21 (govinfo.gov)
- IRS: Publication 526, charitable contributions
- IRS: Publication 550, investment income and expenses
- IRS: Publication 590-B, distributions from IRAs
- IRS: Notice 2025-67, 2026 retirement plan and IRA limits
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