Tax Smart Giving
Tax-deductibility of gifts
- Charitable contributions are income tax deductible for people who itemize their tax returns. Depending on whether you contribute cash or stock you may be able to deduct up to 50% and 30% respectively, of your adjusted gross income on this year's return.
- Giving appreciated stock (held for more than a year) is especially advantageous, as your deduction is based on the value of the stock on the date of the gift and you pay no capital gain tax. This is a great way to lock in recent investment gains.
- Congress has approved an extension of last year's IRA Charitable Rollover rule, which allows donors to give surplus IRA or qualified retirement plan assets (up to $100,000) directly to a charity without having to recognize the gift amount as income.
Tax-Smart Giving Opportunities
Here are a few tax-smart opportunities for charitable giving.Have you recently:
- Sold your company?
- Inherited a large sum?
- Received a bonus?
- Seen appreciation in your stock portfolio?
- Earned a large income?
If you said yes to any of these questions, you may want to ask your financial adviser or accountant if setting up a charitable fund with the Fond du Lac Area Foundation would be advantageous to you.