7 SURPRISING OPPORTUNITIES FOR

YEAR END TAX SAVINGS

Often people come to us because they’ve received a big bonus, sold an asset, received an inheritance, or received a chunk of money. They want to give but they aren’t sure where. Solution: they can open a giving fund, and make the gift now into the giving fund to receive the deduction. Then they can give to a charity from their fund later when they have time.

1 GIVE NOW, DEDUCT NOW, DISTRIBUTE LATER

If you are writing a check for charitable contributions that is above $10,000, chances are you should consider talking to your broker about giving stock instead. A gift of publicly traded stock allows an individual to donate at fair market value and avoid the capital gains tax and it also allows your advisor to rebalance your portfolio. Generally, this approach allows for a 35% increase in giving.

2 GIVE STOCK INSTEAD OF CASH

3GIVE STUFF IN ADDITION TO CASH

90% of our wealth is in our stuff. If you feel maxed out in your cash giving, the solution may be to give non-cash assets. This can include things like cars, trucks, boats, electronics, collectibles, precious metals, and even artwork. In many cases, we see people increase their giving by using assets they were going to sell or give anyway. If you want to give directly to a charity, consider www.idonatefoundation.com.

It’s often overlooked, but real estate is a great gift: residential houses, commercial lots, farm ground, etc. The best part about giving real estate is that partial gifts are possible too. You can donate at fair market value and avoid capital gains with this kind of gift. Real Estate gifts work best when the value is $50,000 and up with no debt.

4 REAL ESTATE GIVING WORKS TOO

Many business owners wait until year-end to complete the sale of their business. The business sale represents the greatest opportunity to maximize giving while minimizing tax. Like publicly traded stock, a portion of the business can be donated prior to the sale at fair market value, and capital gains tax avoided. Even if the sale doesn’t go through, the deduction is still good against ordinary income. For more information, check out this 2 minute video.

5 BUSINESS SALES REPRESENT THE GREATEST SAVINGS

The giving season ends December 31. At a minimum, the gift must be received or postmarked by December 31. Each year, we have the procrastinating few who call us wondering if we can backdate the gift. Unfortunately, the answer is no.

6 DECEMBER 31 IS A REAL DEADLINE

While our focus has been on tax savings, I like to remind people that not everything is about a deduction. I like to encourage random generosity. Have fun with your giving. Read my post here.

7 NOT EVERYTHING IS ABOUT A DEDUCTION

WANT TO LEARN MORE?

CLICK ON THIS TWO MINUTE VIDEO

HOW DO I GIVE STOCK?

CLICK HERE FOR MORE INFORMATION