Keith Spencer, CFP®’s Post

Did you know? If you were age 70.5 or older, and you made donations last year DIRECTLY from your IRA to a charity (known as a Qualified Charitable Distribution), the 1099-R you’ll receive from your investment custodian won’t designate them as QCDs. The 1099-R will show them as normal distributions, and so there’s a danger that you’ll be taxed on them, despite the fact they were charitable contributions. Therefore, MAKE SURE you tell your tax preparer about the QCDs. If you don’t, you’ll pay tax on the amount withdrawn for that purpose, which wipes out the benefit of donating in the form of a QCD.

2024 Year End Tax Planning Strategies: Review Charitable Giving * Make charitable contributions before December 31 to qualify for a deduction. * Consider a donor-advised fund if you want a tax deduction this year but haven’t decided where to donate yet. *If over 70½, you can make a qualified charitable distribution (QCD) from your IRA directly to a charity, reducing taxable income. Check out our latest blog for more strategies: https://lnkd.in/gPERdcYR

One of the most common ways we find out if a client should be considering a Donor Advised Fund: Look at Section A on your tax return–look at your cash contributions to charitable organizations. Then flip over to Section D–take a look at realized capital gains. If you’re paying a notable amount in taxes on capital gains as well as contributing to charitable donations, you should consider a Donor Advised Fund. If you’re not familiar, a Donor Advised Funds allows you to donate appreciated assets like stocks to your charities of choice. Doing so allows you to: ✔️ Take a deduction for the full value of that asset ✔️ Avoid capital gains taxes (no selling occurs) ✔️ Maximize the value of your gift to the charity

Thinking of making a Qualified Charitable Distribution (QCD) from your IRA? Make sure you meet these three key requirements first: 1. You must be age 70 and a half or older at the time of distribution. 2. The donation must go directly from your IRA to the charity- no detours through your bank account. 3. The 2024 QCD limit is $105,000 per person, and it can count toward your Required Minimum Distribution (RMD). Following these rules could mean tax-free giving! 

Two common estate planning goals are contributing to a favorite charity and leaving significant assets to your family under favorable tax terms. A charitable remainder trust (CRT) can help you achieve both goals. Typically, you create a CRT and fund it with assets such as cash and securities. The trust pays out income to the designated beneficiary or beneficiaries for life or a term of 20 years or less. The CRT then distributes the remaining assets to one or more charities. When using a CRT, you may be eligible for a current tax deduction based on several factors. Be aware that a CRT is irrevocable; once it’s set up, you can’t make changes. Contact us for details.

"Give Back and Get Back - Charitable Contributions Tax Guide!" When donating to charity, ensure the organization is qualified by the IRS to make your contributions tax-deductible. Always obtain a receipt for your donation, detailing the date, amount, and organization. For non-cash donations, keep a list of the items and their condition. Remember, itemized deductions for charitable contributions can only be claimed if you don't take the standard deduction, so it's important to calculate which method saves you more on taxes. FOLLOW US FOR MORE @xperttaxservice VISIT OUR WEBSITE www.xperttaxservice.com #CharitableContributions #TaxGuide #IRS #TaxDeductible #TaxSavings #XpertTaxService

Charitable giving creates a win-win situation for everyone involved: the charity and its beneficiaries, the broader community investment, and the donor who gains an immediate tax deduction. With upcoming tax cuts, there are innovative strategies to structure your charitable contributions to maximize the impact of your generosity. Thank you Noel Whittaker and Australian Philanthropic Services for this helpful article. #CharitableGiving #TaxSavings #APSFoundation #Philanthropy #FinancialPlanning

Two common estate planning goals are contributing to a favorite charity and leaving significant assets to your family under favorable tax terms. A charitable remainder trust (CRT) can help you achieve both goals. Typically, you create a CRT and fund it with assets such as cash and securities. The trust pays out income to the designated beneficiary or beneficiaries for life or a term of 20 years or less. The CRT then distributes the remaining assets to one or more charities. When using a CRT, you may be eligible for a current tax deduction based on several factors. Be aware that a CRT is irrevocable; once it’s set up, you can’t make changes. Contact us for details.

Two common estate planning goals are contributing to a favorite charity and leaving significant assets to your family under favorable tax terms. A charitable remainder trust (CRT) can help you achieve both goals. Typically, you create a CRT and fund it with assets such as cash and securities. The trust pays out income to the designated beneficiary or beneficiaries for life or a term of 20 years or less. The CRT then distributes the remaining assets to one or more charities. When using a CRT, you may be eligible for a current tax deduction based on several factors. Be aware that a CRT is irrevocable; once it’s set up, you can’t make changes. Contact us for details.

Two common estate planning goals are contributing to a favorite charity and leaving significant assets to your family under favorable tax terms. A charitable remainder trust (CRT) can help you achieve both goals. Typically, you create a CRT and fund it with assets such as cash and securities. The trust pays out income to the designated beneficiary or beneficiaries for life or a term of 20 years or less. The CRT then distributes the remaining assets to one or more charities. When using a CRT, you may be eligible for a current tax deduction based on several factors. Be aware that a CRT is irrevocable; once it’s set up, you can’t make changes. Contact us for details.