A season for thanks and giving

We are moving into the season where giving is top of mind. At the same time, the church is moving toward finishing up its year with people fulfilling their 2023 estimates of giving.

I don’t give because of income tax benefits, but if I can realize tax savings while giving what I had already planned to give, more to the good.

Here are two ideas – one available to everyone and one that is only available to seniors. If you have questions, please consult your tax advisor.

FOR EVERYONE – GIFT OF APPRECIATED STOCK: If you have stock that has increased in value, if you sell it you will owe taxes on the difference between what you sell it for and your original purchase price (your gain).  However, if you gift that stock to the church, you will not owe taxes on the gain and you will have a charitable deduction of the full value of the stock. To make a gift of appreciated stock, contact Tiffanie Harper.

FOR SENIORS – QUALIFIED CHARITABLE DISTRIBUTION: Seniors who have traditional retirement accounts (IRAs, 401(k), etc.), are required to take some money out and have it taxed each year starting at age 72. Instead, the distribution can be made directly to the church as a Qualified Charitable Distribution (QCD). This can be used to fulfill an estimate of giving but will not be counted in your taxable income. You cannot take a charitable deduction for this distribution, but by lowering your taxable income you may see several benefits, including reduction of the Income-Related Monthly Adjustment increase to Medicare B premiums. You can take a QCD for more than the Required Minimum Distribution if you desire and even start at age 70 ½ before an RMD is required.

Again, if you have any questions, please contact your tax advisor.

Martin Ericson