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Tax-Smart Ideas to S T R E T C H
Your Support for HGI
1. Give securities instead of cash. You
can magnify your support for worthwhile causes by giving stocks or other
assets that have (a) gone up in value, and (b) been owned by you for
more than 12 months. You can deduct your cost, plus your untaxed “paper
profit” (capital gain), up to 30% of your adjusted gross income
(AGI). Excess deductions can be carried over and deducted for up to
five years. Cash gifts are deductible up to 50% of AGI.
2. Make a large gift, receive a partial deduction,
but keep lifetime income. You can make a gift of significance
today yet reserve income for life for yourself or others. You can choose
between a fixed income or variable payments. You’ll receive a charitable
deduction for part of what you give, and if you fund your gift with
securities, you may defer recognition of capital gains and/or avoid
capital gains taxes. Lifetime payments may be taxed under favorable
rules. Call us for details.
3. Make gifts from your business. If you
own a business, you may have two “pockets” from which to give.
Owners of closely held corporations should consider contributing stock
in their companies. In some cases, it may be more favorable for the
corporation to make charitable gifts. Ask your advisors.
4. Make “temporary” gifts of cash or income-producing
property. Letting charities “borrow” income-producing
assets for several years (through a charitable lead trust), with the
assets later passing to children or grandchildren, can reduce income
taxes and future gift taxes, estate taxes, and generation- skipping
transfer taxes.
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