TAX-WISE ESTATE PLANNING
Want to increase your income and minimize capital gains tax? We can help. Whether single, married, or planning for retirement years, the future of those you care about most will be a reflection of plans made today.
How We Can Help You…
Charitable Gift Annuity — Pays you a guaranteed, fixed income for life based on your age. At your death, the balance of the annuity goes to the Abilities Foundation. When you purchase an annuity, you receive a current income-tax deduction based on the projected value ultimately passing to the Abilities Foundation.
Charitable Remainder Annuity Trusts and Unitrusts — By creating a Charitable Remainder Trust (CRT) you receive an income for life and a tax deduction for the value of the remainder interest that will ultimately pass to the Abilities Foundation. Trusts are exempt from capital gains tax, so you can completely avoid capital gains tax by funding your trust with highly appreciated stock. An Annuity Trust provides a fixed income for life, while a Unitrust provides income based on the annual value of the trust assets, which allows your income to rise as assets increase in value.
ATTENTION REAL ESTATE INVESTORS!
Do you own houses, apartments, or condominiums that you have held long-term? If so you might consider donating these units to the Abilities Foundation. In exchange, you will avoid or delay capital gains tax and may receive a substantial tax deduction for the fair market value of the property.
We would be delighted to show you the benefits of any of these or other planned giving methods. Contact Frank De Lucia at 727 600-8900 to arrange a presentation. Please note this information is not intended to serve as tax advice. Consult your tax advisor or attorney before making any planned gifts.
Tips for Deducting Charitable Contributions
When preparing to file your federal tax return, don’t forget your contributions to charitable organizations. Your donations could add up to a sizeable tax deduction if you itemize on IRS Form 1040, Schedule A. Here are a few tips from IRS to ensure your contributions pay off on your tax return:
1. Contributions must be made to qualified organizations to be deductible. You cannot deduct contributions made to specific individuals, political organizations and candidates.
2. You cannot deduct the value of your time or services. Nor can you deduct the cost of raffles, bingo or other games of chance.
3. If your contributions entitle you to merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received.
4. Donations of stock or other property are usually valued at the fair market value of the property. Special rules apply to donation of vehicles.
5. Clothing and household items donated must generally be in good used condition or better to be deductible.
6. Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record or a written communication from the organization containing the name of the organization, the date of the contribution and amount of the contribution.
7. To claim a deduction for contributions of cash or property equaling $250 or more you must obtain a written acknowledgment from the qualified organization showing the amount of the cash and a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift. One document from the organization may satisfy both the written communication requirement for monetary gifts and the written acknowledgement requirement for all contributions of $250 or more.
8. If you claim a deduction of more than $500 for all contributed property, you must attach IRS Form 8283, Noncash Charitable Contributions, to your return.
9. Taxpayers donating an item or a group of similar items valued at more than $5,000 must also complete Section B of Form 8283, which requires an appraisal by a qualified appraiser.
For more information on charitable contributions, check out Publication 526, Charitable Contributions, which is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Source: IRS Tax Tip 2009-57