Did you know that you can reduce your taxes for 2015 by making certain charitable gifts?
Changes in the economy and the nation’s tax laws are providing powerful incentives to encourage charitable gifts!
Those people subject to new higher tax rates may find that their charitable gifts can now be made at a lower after-tax cost.
Due to pending proposals in Washington, making gifts before the end of 2015 is an attractive option.
Key points to Know:
Gifts of cash, are the most often made in the form of cash, checks and electronic transfers. Gifts of cash may be used to eliminate federal income tax on up to half of your adjusted gross income (AGI). You may also enjoy state income tax savings as well, with gifts of cash.
Giving appreciated assets (stocks, bonds or mutual funds), is also a good approach to be “tax smart” this season.
These gifts are generally deductible at their fair market value if they have been owed for more than one year, and can be used to offset tax on up to 30 percent of your adjusted gross income (AGI).
As an additional benefit, no tax is owed on the capital gain that would otherwise result from a sale of the asset.
Gifts from retirement plans (IRA’s), is really important to consider this year!
If you are age 70 1/2 or older, qualified charitable distributions can be made directly from your IRAs to TPT without the distribution being counted as gross income on your tax return and it still counts toward your annual required minimum distribution. The distributions must be made from a traditional or Roth IRA.
As you can see, you can make meaningful and cost-effective charitable gifts by carefully planning their timing at the end of 2015.
The IRA rollover provision expired in 2013, however we are waiting for Congress to act upon this legislation (soon, for 2014) --so please talk with your tax adviser to see what works best for you and stay tuned for Congress to act.
We do encourage you to consult your personal tax financial or legal professional for advice regarding your specific situations.
Interested in learning more?
Please contact Cindy Hall-Durán /Manager of Major Gifts and Planned Giving
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