Ending The Year Well
Consider these worthwhile strategies before the year’s end.
- IRA Charitable Rollover
Congress made permanent the law that allows people age 70½ or older whoown an IRA to make gifts directly from their IRA to charity. For many people, this is the best tax-wise way to give. An IRA rollover gift will not be included in your taxable income and may qualify for your required minimum distribution.
- Outright Gift of an Asset
If you wish to make a gift to support ministry and mission this year but are concerned about preserving your cash resources, consider a gift of an appreciated asset. A gift of securities, business interests or real estate can provide you with significant income and capital gains tax savings, often exceeding the benefits of a cash gift.
- Donor Advised Fund (DAF)
If you are looking for an end-of-year deduction but want more time to make thoughtful giving decisions, consider a donor advised fund (DAF). Our organization can use your tax deductible gift to establish a DAF in your name. You can make grants from your DAF now and in the future to support your American Baptist ministry or mission of choice.
- Zero-Tax Gift and Sale
If you are planning to sell an asset like securities, real estate or a business, before you sell, consider a “zero-tax” charitable gift and sale. By making a gift of part of the asset before the sale, you can use a tax-saving charitable deduction to significantly lower or eliminate the capital gains tax on the sale.
As always, an attorney should be present whenever you make changes to a will or trust. This article is Copyright © 2020 Crescendo Interactive, Inc. Used by permission.