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

American and Immigrant Parents: Life Lessons about Money

Growing up in a third world country and moving to the U.S. is a dream for many immigrants. So when my mother received the Visa for my sister and I to come to the U.S., we packed our bags and were ready within the day.

Keynesian Economics

Published by Jake Bleicher When most people think about John Maynard Keynes they usually think about Keynesian economics. His work has helped to shape modern economic policy and played a monumental role in revitalizing the global economy after the Great Depression.

10 Questions to Ask Your Advisor

We’re on a mission to deliver trust, transparency and accountability to clients. As your trusted advisor, we equip you with the tools you need to make educated decisions regarding your financial future. To start, we have listed 10 Important Questions That Each Investor Should Ask Thei …

Retirement Funding: More than a 401k Account

Published by Mark Petersen People have many different ways of saving for retirement. One may utilize pre-tax or post tax savings, invest in appreciating assets or collectibles or even allocate money to assets which may simply maintain their value over time.
1 2 3 84 85 86 87 88 89

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