A Time for Giving

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Recently, my boyfriend and I decided to take part in our church’s Christmas donation for families in need. We picked a family number and were given a paper with a family of kids’ names, ages, gender and a couple of presents on their Christmas list. To our surprise, our list had 5 kids ages 1, 3, 5, 7 and 15. The kids were a blast! The teenager was a little tougher but we finally ended up getting everything the family asked for and it was a wonderful experience that I highly recommend. This leads me to my end of the year topic…gift tax exclusion!

To qualify for a gift tax deduction, the gift must be less than $14,000 for an individual and $28,000 for joint filers (make sure to keep records of your purchases). The gift can be to a qualifying charity, to pay for tuition or medical expenses for someone else.

Cash

For cash donations, you can write off the full deduction as long as it is under maximum deduction amounts. Be sure to keep receipts for your cash donations!

Stocks Owned in Taxable Accounts Over 1 Year

Appreciation: The deduction is taken as of market value at the date of the gift and you also avoid taxes on capital gain appreciation.

Underperformance: You can sell the property to realize losses. If losses also exceed your gains, you can offset capital losses up to $3,000 against other income. Losses can also be carried off year after year. Then you can donate the cash and write off the full deduction.

Stocks Owned in Retirement Accounts

If you are over 70.5, you can donate up to $100,000 dollars out of IRA’s. These distributions are tax free and they also qualify as Required Minimum Distributions.

Educational Gifts 

Educational Gifts must be a payment made specifically to the educational institution for tuition only and cannot exceed maximum deduction amounts.

Medical Expense Gifts

Similar to the educational expense gift, the payment must be made explicitly to the medical institution providing care or the insurance company. The insurance amount is separate from the medical expense deduction.

Let’s face it, we all love to give gifts during the holidays so why not take advantage of your generous heart and reduce your taxable income at the same time.

This information is not intended to be a substitute for specific individualized tax advice.  We suggest that you discuss your specific tax issues with a qualified advisor.  This material is for general information only and is not intended to provide specific advice or recommendations for any individual.  To determine what is appropriate for you, consult a qualified professional.

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Spring Cleaning

When it comes to spring cleaning, the hardest part is to get started…but with a plan in place your financial closet refresher will get you on your way to a stimulating rest of the year. Your spring cleaning financial plan can be as simple as these three steps:

Use Your Budget to “Increase Your Paycheck”

I recently celebrated another birthday. I was disappointed when I remembered that, while my toys have gotten more expensive, they do not bring me even a fraction of the excitement a new set of Legos did when I was 6. But upon reflecting on some of the financial changes I’ve experience over …

Sushi and the Art of Stockpicking

Published by Rob Furlong Every year around the Oscars I remember that between two kids, a career and countless other commitments, I haven’t seen any movies since, well, the same time last year. This leads to a week of late-night binge watching, usually of movies that have lingered in my Net …

5 Ways To Make It Easy

Published by Paul West I was listening to the great Eagles song, Take it Easy, on iTunes Radio recently. The song made me reflect and think about what clients want to feel from the services provided by their Wealth Advisor and advisory firm.

1 2 3 94 95 96 97 98 101 102 103

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation

TweetsFollow Us