As 2014 comes to a close, it’s a good time to think about your charitable giving and tax planning strategies. If you itemize your deductions on your tax return, contributions made on or before December 31st are considered deductible for this year. In addition, there are some other important tips for financial planning:
IRA Rollover Update
The charitable IRA rollover provision has allowed donors who are 70 ½ and otherwise subject to taking a required minimum distribution (RMD) from their IRA to instead make qualifying charitable donations of up to $100,000. This IRA rollover of the RMD directly to charity effectively eliminated the taxable income attributed to the RMD. This provision began in 2011, expired in 2013 and to date has not yet been extended for 2014. Current legislation extending the Charitable IRA Rollover passed the US House of Representatives, but action in the Senate was delayed until after the election and has still not yet been taken.
Regardless of Congressional action, if an interested donor has sufficient resources and has not yet taken their RMD and already plans to make year-end donations, it is something to consider and discuss with your financial advisor.
Have you considered a gift other than cash?
A gift of appreciated stock, mutual fund shares or other property held longer than one year could be a better option for you to give directly to Palmetto Place Children’s Shelter. You may be able to claim a tax deduction for the full, appreciated value while paying no capital gains tax on the transaction, which, in turn, costs you less than an equivalent gift of cash.
For more information contact Erin Hall at firstname.lastname@example.org or 803-786-6819.