Best Assets for Giving
Cash
Cash is a frequently used asset for all forms of charitable gifts
and provides the most immediate deductions. Every dollar you give
will be deductible up to 50% of your adjusted gross income, if you
"itemize." Excess deductions can be carried over and deducted in
up to five future years. A $1,000 contribution saves $350 for a
person in the 35% tax bracket, $250 for someone in the 25% bracket.
Tax savings are not the reason friends support our endeavors, of
course, but they do enable supporters to do more than they might
have thought possible. But the results may be better if you give
investment assets that have gone up in value.
Investment Assets
People often are surprised to learn that there are different tax
results from giving different types of property. Gifts of highly
appreciated securities, for example, may be particularly favorable.
If stocks have been owned more than one year, then donors can deduct
not just their original cost, but also any "paper profit" present
in the gift. Best of all, there are no capital gains taxes due when
you give securities. Mutual funds and other types of investments
offer the same advantages.
Call us before . . . you sell profitable stocks
Real Estate
The tax benefits available for gifts of highly appreciated real
estate are virtually identical to those for gifts of securities
that have gone up in value. First, you avoid capital gains tax on
your profit. Second, you receive an income tax charitable deduction
for the full fair market value of the property you contribute.
Call us before . . . you sell investment real estate, vacation property
or farm land.
Collectibles
Some of our friends find they have "hidden assets" that can help
them in satisfying their philanthropic goals. Antiques, paintings
and other "collectibles" – even patents and copyrights – can be valuable
assets for giving. In many cases, the same favorable tax rules apply
to these gifts that apply to securities and real estate. Please
check with us on the feasibility and tax results of gifts of unusual items.
Call us before . . . you sell collectibles at a profit.
Business Interests
Many of our friends own stock in their own businesses that can be given
at extremely low cost, providing personal deductions that are "paid
for" by the company.
Call us before . . . you sell your business, sell replacement stock
from an employee stock ownership plan (ESOP) or plan for passing
your business to the next generation.
Individual Retirement Accounts (IRAs) for Those Over Age 70½
Through 2009, IRA owners age 70½ and older can arrange distributions to qualified organizations, up to $100,000 per year. No income tax deductions are available for IRA gifts, but donors may save taxes anyway where gifts take the place of required minimum distributions. To make a gift from your IRA, just contact your IRA trustee or custodian. State that you wish to have a distribution check issued in our name and mailed to our office with a note identifying you as the donor. It’s important that you notify our office so we can to ensure that you receive the necessary receipt.
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