Five Ways to Maximize Your Giving
April 5, 2022
Savvy giving to stretch your dollar AND reduce your taxes
Whether shopping, investing or giving, you’re always trying to get the most out of your money. To you, this just makes sense!
If you’re looking for even more ways to stretch your dollars, consider these savvy, tax-wise ways to support CMDA:
Give Appreciated Stock – If you’ve owned stock for at least a year, you can receive a double tax benefit by donating it to CMDA. Not only will you receive a tax deduction for the fair market value of the stock, but you’ll also avoid paying capital gains tax.
Give Real Estate – If you have real estate that’s increased in value and you no longer need it, consider gifting all or a portion of it, prior to a sale. By doing so, you can bypass the capital gain and receive a charitable deduction.
Give From an IRA – If you are 70 ½ or older, you can make tax-free distributions from your IRA (individual retirement account), up to a maximum of $100,000 per year. These gifts count toward your annual required minimum distribution, and none of the IRA distributions will be included in your adjusted gross income.
Give Farm Machinery and Commodities – Farmers can realize big tax savings by gifting machinery and commodities—such as grains, soybeans, fruit and even livestock—before they are sold. You’ll reduce your taxable income, and you may be able to deduct the production costs.
Make a Life Income Gift – Life income gifts are great solutions if you wish to give with impact but are concerned about having enough to meet your family’s needs. You can give cash or other property and receive steady income for the rest or your life or for a set number of years. The remainder of the gift will go to support CMDA.
Ready to make the most of your support of CMDA? Contact Paul Montgomery by email at [email protected] or call 423-844-1011.
