Be Tax-Savvy: 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.

Even better:Double your impact. Give by December 31 and your gift will be matched dollar for dollar!

 

So, what are the five things to do now to give less to the IRS next year?

  1. Donate appreciated stocks. Donating appreciated stock (and other property) held more than one year can have a double tax advantage: you don’t pay capital gains tax on the donation, and you can get a deduction for the fair market value if you itemize.

    2. If you still like the stock you’ve donated, you can re-buy it immediately and your basis would reset to your new price. The basis reset would be advantageous in a subsequent sale.

  2. Create an IRA gift. For friends of Kessler Foundation 70½ and older with traditional IRAs, making an IRA gift can be 100% tax-free. And if you are 72 or older, IRA gifts reduce your future tax burden and can fulfill your required minimum distribution without increasing your taxable income.

  3. 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.

  4. Contribute to a donor-advised fund. When you contribute to cash, appreciated assets or investments held for at least a year to a donor-advised fund you may be able 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.

  5. Make a tax-deductible year-end gift. If you itemize your taxes, contributions to qualified charities such as Kessler Foundation may be deducted up to 60% of your adjusted gross income for the 2022 calendar year.

 

To learn more about ways to give and the impact of your support, please visit our website or contact me. Your generosity makes a difference. You make a difference.