There are only a few more weeks until the end of the year. Make the most of the giving season this year by utilizing some of Maggi Tax’s tax-efficient ways to donate to the causes that mean the most to your family. With these strategies, you can ensure that your gift can go the extra mile.
If you are planning a contribution to a charitable organization this year, consider this idea. Gifting a donation by check seems simple and efficient, but it may not be the best bang for your buck. Instead, donors may want to think about gifting appreciated securities. For example, if a donor gives $10,000 in appreciated securities versus $10,000 in cash, both parties can reap a handful of benefits. The donation allows the donor to avoid paying capital gains tax on the security, and the charity avoids taxes when they sell the donated investment. Additionally, the donation can rebalance the individual’s portfolio and reduce the individual’s taxable income if the recipient organization qualifies.
Some philanthropists may also consider an extra “stacking” stuffer this year. If you feel compelled to give more than in previous years, you may want to opt for “stacking” donations. This option gives donors the ability to deduct up to 30% of their adjusted gross income by gifting appreciated securities, and then gifting another 30% in cash. This provides a tax deduction on both securities and cash gifts.
2022 could (and perhaps, should) end with a burst of hope and joy. If you feel inspired to help your community, let Maggi Tax help guide you through the different gifting techniques that will maximize the donations for both the recipient organizations and your family. Contact us here or call (727) 799-1701 to schedule your appointment.