Charitable Trusts
A charitable trust is one way to give to charity and receive a tax deduction. A charitable
remainder trust lets you enjoy income from your gifted asset while you are living or for a
specified period of years. Then, after the time period, contributed assets are distributed
to the charitable organization designated in the trust. A charitable lead trust
immediately benefits the charitable organization you select by paying it from the trust.
With either trust, you receive a tax deduction in the year it's created.
Appreciated Property
Another way to give is by making a contribution of appreciated property to a charity. This
can let you take a tax deduction equal to the property's full, fair market value and avoid
capital gains tax.
Non-Taxable Gifts
You can also make unlimited, non-taxable gifts to noncharitable beneficiaries in two
situations. In either situation, the gift donor must make payments directly to the service
provider.
First, amounts paid on behalf of an individual for medical care expenses qualifying as
medical expenses under Section 213 of the IRS Code are excluded from the gift tax.
The second gift qualifying for unlimited gift-tax exclusion is tuition expense gifts.
Tuition is the only educational expense entitled to the unlimited exclusion.
These are just a few ideas on how to get the most from charitable and non-taxable gifts.
contact me to determine what kind of giving fits your specific needs. Gift giving can be
great because you help others and yourself at the same time.
