Charitable Tax Planning
As you’re preparing your tax filing, it’s not too early to think about charitable tax planning for 2022. To help, Perry Green from Waddell & Associates shared what he wishes everyone knew about making charitable gifts. As Perry says: Charitable gifting lets you improve the world and save on taxes at the same time.
- If you can, avoid using your checkbook to donate. If you’re in a position to, give appreciated stock. Stock gifts offer the double benefit of a current income tax deduction AND avoid capital gains tax on growth.
- Open a donor-advised fund at a place like the Community Foundation. You contribute to the fund and receive the tax benefit this year, but can donate to charities from the fund any time in the future.
- Work with your financial advisor to develop a multi-year charitable strategy to maximize benefits and minimize tax burden. Together, create a plan that helps you support the causes you value, now and in the future.