More Ways to Address Income Tax Issues
Posted by Elizabeth Thorley on Mon, 11/21/2016 - 10:16
Continuing to focus on tax-related matters as the end of the year approaches, here are a few more things to consider:
College 529 Plans: If you have established a New York State College 529 account, remember that funding in a tax year is deductible on NYS taxes up to $10,000 for a married couple and $5,000 for an individual. Other sates also provide tax reductions for 529 plans and you may contact our office to learn more about these.
Required Minimum Distributions
Posted by Elizabeth Thorley on Mon, 11/14/2016 - 10:44
People over age 70 ½ who have retirement plans are required to take minimum distributions each year. If someone does not need this extra amount, it can be donated directly from the IRA to a qualified charity.
Posted by Elizbaeth Thorley on Tue, 11/08/2016 - 13:48
Instead of making a gift to a single charity, some might perfer to make a gift that supports multiple charities. The mechanism for doing so is called a donor-advised fund, which is basically a simplified version of a private foundation. First, you establish a donor-advised fund that invests your donations as aggressively or conservatively as you wish. You can then suggest qualified charities to receive distributions from the account. Your donation to the fund is tax-deductible.
Make a Charitable Gift and Receive Income
Posted by Elizabeth Thorley on Tue, 11/01/2016 - 09:06
This is a farily common strategy for people who are selling a business. By redirecting some of the proceeds of the sale to their favorite charity, they may continue to receive income during their lifetime. Under such an arrangement, the charity would invest the funds donated to it, would pay an agreed-upon income to the donor (and perhaps to his or her spouse), and eventually would receive whatever remains of the principal. The donor, of course, can claim the amount of the gift on his or her IRS filing.
Charitable Contributions to Lower Your Taxable Income
Posted by Elizabeth Thorley on Tue, 10/25/2016 - 08:20
Making charitable contributions or gifts before year-end is a common way