‘Tis the Season: How to Make That Charitable Donation Count More

9:53 pm Asset Protection, Estate Planning

money gift 150x150 ‘Tis the Season: How to Make That Charitable Donation Count MoreThe holidays put all of us in the giving mood, and December is indeed the most charitable month, with more than $28 billion in donations recorded last December, according to the Atlas of Giving.

A CNNMoney.com article last week notes that there are ways to be charitable that can also be better for you tax-wise, including:

Gifts of appreciated securities – donating stocks, bonds or mutual fund shares directly to a charity will save you from having to pay capital gains taxes – and if you’ve owned that donation for more than a year, you can deduct the full market value instead of just the amount you invested.

Give from an IRA – if you’re 70 ½ or older and haven’t taken your required minimum distribution from an IRA, you can do an IRA charitable rollover (up to $100,000), which saves you from having to pay income taxes on a RMD.

Give to a community fund – according to the Council on Foundations, California has 71 community funds that accept donations.  Giving to a community fund can result in both state and federal tax savings.

Charge it – if you’re cash-strapped during the holidays, you can still donate via credit card and pay it off in January.  The IRS allows you to take the deduction in December when the donation is made, rather than when it is paid.

Contact us today and let our Newport Beach law firm help you with all your financial planning needs.

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