Sharing your ‘bounty’ can be rewarding - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Sharing your ‘bounty’ can be rewarding

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Thursday, November 21, 2013 7:45 am

Thanksgiving is almost here. If you have the financial resources to provide a comfortable life for your family, you have reason to be thankful. And if you can afford to share some of your “bounty” with charitable organizations, you may want to be as generous as possible — because your gifts may allow you to both give and receive.

By donating cash or other financial assets, such as stocks, to a qualified charity (either a religious group or a group that has received 501(c)(3) status from the IRS), you help benefit an organization whose work you believe in — and, at the same time, you can receive valuable tax benefits.

To illustrate: If you give $100 to a qualified charity, and you’re in the 25 percent tax bracket, you can deduct $100, with a tax benefit of $25, when you file your 2013 taxes. Therefore, the real “cost” of your donation is just $75 ($100 minus the $25 tax savings).

Furthermore, if you donate certain types of non-cash assets, you may be able to receive additional tax benefits. Suppose you give $1,000 worth of stock to a charitable group. If you’re in the 25 percent bracket, you’ll be able to deduct $250 when you file your taxes. And by donating the stock, you can avoid paying the capital gains taxes that would be due if you had eventually sold the stock yourself.

To claim a charitable deduction, you have to be able to itemize deductions on your taxes. Charitable gifting can get more complex if you choose to integrate your charitable giving with your estate plans to help you reduce your taxable estate. The estate tax is consistently debated in Congress, and the exemption level has fluctuated in recent years, so it’s not easy to predict if you could eventually subject your heirs to these taxes. Nonetheless, you can still work with your tax and legal advisors now to take steps to reduce any possible estate tax burden in the years ahead.

One such step might involve establishing a charitable remainder trust. Under this arrangement, you’d place some assets, such as appreciated stocks or real estate, in a trust, which could then use these assets to pay you a lifetime income stream. When you establish the trust, you may be able to receive a tax deduction based on the charitable group’s “remainder interest” — the amount the charity is likely to ultimately receive. (this figure is determined by an IRS formula). Upon your death, the trust would relinquish the remaining assets to the charitable organization you’ve named. Keep in mind, though, that this type of trust can be complex. To establish one, you’ll need to work with your tax and legal advisors.

Of course, you can also choose to provide your loved ones with monetary gifts while you’re still alive. You can give up to $14,000 per year, per individual, to as many people as you choose without incurring the gift tax. For example, if you have three children, you could give them a cumulative $42,000 in a single year — and so could your spouse.

Thanksgiving is a fine time to show your generosity. And, as we’ve seen, being generous can be rewarding — for your recipients and yourself.

• This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Joseph B. Ortiz, AAMS, CRPS. Reach him at (480) 753-7664 or joseph.ortiz@edwardjones.com. Accredited Asset Management Specialist and AAMS, Chartered Retirement Plans Specialist and CRPS are registered service marks of the College for Financial Planning.

More about

More about

More about

  • Discuss

A musical tour of Europe’s great cities: Venice

Once again thanks for your suggestions for our post-Brexit referendum grand musical tour of Europe’s great cities, which this week reaches Ven…

Published: July 29, 2016 - 4:04 am @ https://www.theguardian.com/music/2016/jul/29/a-mu…

Press Play on Mart Rovereto’s Robert Morris Retrospective

Mart Rovereto is currently showing a retrospective of the film and video work of American sculptor and conceptual artist Robert Morris, which …

Published: July 29, 2016 - 4:03 am @ http://uk.blouinartinfo.com/news/story/1469285/pre…

How my adopted daughter made peace with the outdoors

Info Before you can adopt a child from Oregon’s Department of Human Services, social workers ask you to spend several half-days together. The …

Published: July 29, 2016 - 3:33 am @ http://www.hcn.org/articles/how-my-adopted-daughte…

DPS: Man killed after vehicle flips off I-17 in north Phoenix

PHOENIX - Officials are investigating after a man was killed when his vehicle flipped off Interstate 17 Thursday evening in north Phoenix. A D…

Published: July 29, 2016 - 1:04 am @ http://www.abc15.com/news/region-phoenix-metro/nor…

Megamerger-happy investors bid up AZ shares on speculation that Novartis might try a takeover

Would AstraZeneca really find itself contending with another megamerger offer, this time from Novartis? That’s the speculation on the street, …

Published: July 29, 2016 - 12:33 am @ http://www.fiercepharma.com/pharma/megamerger-happ…

Firefighters called to rescue man in White Tanks after leg impaled by stick

BUCKEYE, AZ - Firefighters from several departments are working to help a man who suffered a leg injury while hiking in the White Tanks mounta…

Published: July 28, 2016 - 10:30 pm @ http://www.abc15.com/news/region-west-valley/bucke…

Phoenix charter bus company testing out Pokemon hunting tours

PHOENIX - File this in the "Why-did-I-not-think-of-this?" bin... An Arizona charter bus company is looking to help you on your journey to beco…

Published: July 28, 2016 - 9:06 pm @ http://www.abc15.com/entertainment/events/phoenix-…

Scottsdale's Don Bluth Theatre Plans Fall Closure to Focus on Fundraising

Lynn Trimble A A Just one month after announcing it needed $50,000 to continue operations, Scottsdale-based Don Bluth Front Row Theatre has an…

Published: July 28, 2016 - 8:31 pm @ http://www.phoenixnewtimes.com/arts/scottsdales-do…

Neighbors still scared as hunt continues for Phoenix serial shooter

MARYVALE, AZ - Flyers continue to be posted throughout Maryvale, as neighborhood watch groups spread the word about the Phoenix serial shooter…

Published: July 28, 2016 - 7:36 pm @ http://www.abc15.com/news/region-phoenix-metro/wes…

American Geophysical Union Announces 2016 Fellows

26 July 2016 WASHINGTON, DC—The American Geophysical Union (AGU) today announced its 2016 Fellows, an honor given to individual AGU members wh…

Published: July 28, 2016 - 7:01 pm @ http://news.agu.org/press-release/american-geophys…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…