4 Things to Do Now to Give Less to the IRS on April 15
April 15—the dreaded tax day—may seem like a long way off, but you can take action now, before December 31, to give less to the IRS and more to change the lives of people with disabilities.
Even better: when your charitable giving is part of your overall financial plan, you can give more and have a greater impact, without actually giving more.
Even better than that: give by December 31 and your gift will be matched dollar for dollar!
So what are the four things to do now to give less to the IRS on April 15?
1. Donate highly appreciated, publicly traded assets, such as stock, bonds, or real estate that you have held for a year or longer. You will avoid capital gains tax on the appreciation and can claim the full value of the assets as a charitable contribution.
2. If you are 70½ or older and must take a required minimum distribution from your retirement account, you can ask the plan administrator to make a distribution directly from your account to Kessler Foundation. While you won't receive a charitable contribution deduction, the distribution won't be added to your taxable income.
3. Consider opening and contributing to a donor-advised fund (DAF) account, which allows you to contribute cash, appreciated assets or investments held for at least a year. A DAF enables you to take one large current-year tax deduction, and potentially avoid paying capital gains tax on appreciated assets. The funds can be invested for potential growth, and then granted to Kessler Foundation over time.
Best wishes for good health and happiness now and throughout the new year!