Year-end Giving with Tax Benefits

Year-end Giving with Tax Benefits

With December 31 fast approaching, now is the ideal time to consider year-end tax planning strategies and options. You still have time to make adjustments before the deadline and make plans for the new year.

We encourage you to take the time to sit down and analyze your financial situation. Then implement a plan to make sure you’re on target with your financial goals. Here are several options to consider:

Charitable Gifts. Timing is especially important when considering a charitable gift. A gift of cash or appreciated stock may be completed quickly right up to year-end. A gift of real estate usually takes more time to complete properly but is well worth considering because of the tremendous tax benefits. Click to learn more about maximizing both your giving and tax benefits in light of the new tax laws.

Donor Advised Fund. A personal giving fund which you can fund with cash, securities, real estate, etc., for distribution to your church, ministries and other charities over time. You will receive an immediate tax deduction in the year funding is completed. If funded with cash or appreciated assets, you may avoid capital gains and thereby increase the giving capacity of the assets given.

Qualified Charitable Distribution. If you are age 70½ or older, you can make a charitable distribution from your IRA to a qualified 501©(3) charity. A qualified charitable distribution (QCD) can be made directly from your IRA to a qualified public charity, and the distribution will not be treated as taxable income to the donor. In addition to helping you realize tax advantages, a charitable IRA distribution would satisfy your required minimum distribution (RMD) amount. If you are age 70½ or above, you are permitted to transfer up to $100,000 to charity tax-free each year, even if that amount is higher than your RMD.

Family Gifts. If circumstances allow you to start transferring some of your wealth to children and grandchildren, consider making annual exemption gifts. For 2018, you are entitled to give $15,000 per person to any number of individuals free from gift tax.

If you would like assistance implementing some of these ideas or developing a year-end giving strategy specific to your situation, click here to contact us or call 866.945.6350.

This information is not legal or tax advice. Information is from sources deemed reliable. Information is subject to error, omission, withdrawal, or change. Contact your own legal or tax advisor before taking any action that would have a legal or tax consequence.