5 Things to Do Now to Give Less to the IRS
Sometime next year, you’ll file your taxes. It may seem a long way off, but if you act now, you can give less to the IRS and more to change the lives of people with disabilities. In fact, you might even be able to give more, and have a greater impact, without actually giving more.
So, what are the five things to do now to give less to the IRS next year?
- 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.
- 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.
- Donate Cryptocurrency. Donating appreciated cryptocurrency is a great way to partially offset or eliminate your crypto taxes while supporting a cause that you care about. Donating crypto means you may end up paying no capital gains taxes on the appreciated crypto and get a fair market value deduction for what you donated.
- 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.
- Make a tax-deductible year-end gift. And thanks to the CARES (Coronavirus Aid, Relief, and Economic Security) Act, all taxpayers may take a charitable deduction of up to $300, even if you do not itemize. Plus, for those who do itemize, the law allows for cash contributions to qualified charities such as Kessler Foundation to be deducted up to 100% of your adjusted gross income for the 2021 calendar year.
To learn more about ways to give and the impact of your support, please visit our website or contact Michele Pignatello, vice president and chief development officer at Kessler Foundation. Your generosity makes a difference. You make a difference.