Year-End Tax–Saving Tips That are Good for Your Soul and Your Wallet.
December 23, 2009 § Leave a comment
Has Wall Street been kind to you this year? Consider paying it forward.
While our economy isn’t exactly singing and dancing right now, you still may have benefitted from the stock market’s rebound. If you are one of the fortunate owners of appreciated securities (individual stocks, bonds, or mutual fund shares) that you’ve owned for more than a year, consider donating that gain to support the Food Bank. Generally, you can claim an itemized charitable contribution deduction for the full market value at the time of the donation and avoid capital gains taxes. Remember, you must itemize your deductions if you want to benefit from this opportunity.
You should get started right away if you want your donation to be considered for this year. While securities transfers are usually processed fairly quickly, some companies may take several days or even weeks to process your transaction. Here’s our securities donation form to get you started.
Use your IRA to participate in our mission today and enjoy tax savings.
Did you know you can make up to $100,000 in charitable cash donations to the Food Bank from your IRA? They’re called Qualified Charitable Distributions (QCD’s for short). This type of donation doesn’t affect your tax bill because QCDs are tax-free. And, QCD’s reduce your IRA balances. In the past, the only way to pass funds from your IRA to a charity without a tax hit was to name the charity as a beneficiary upon your death. Now, you can be an active participant in our mission and experience the results of your gift during your lifetime. But you must act now, because QCDs expire December 31, 2009.
There are some rules though:
1. You must be age 70 ½ or older by year end.
2. Your donation must be made directly from your IRA to the Food Bank.
3. There are other specific rules, so it’s important that you speak to a qualified professional.
- Visit the IRS website for a nice list of tips for year-end giving with videos in Spanish, English and ASL.
- Before making any gift, talk to your financial advisor, legal, or tax advisor for how to best handle your situation.
- For questions about securities or other planned giving with the Food Bank, contact Amy Silvey, Senior Director of Development.