Giving and Charitable Deductions

As the year winds down, many tech professionals find themselves reflecting on how to give back. Did you know that charitable giving spikes by over 30% in December alone?

Gift Items

There are many items that can be gifted, including:

• Cash
• Investment securities - For example, donating appreciated securities can help avoid capital gains taxes while allowing you to claim a deduction.
• Real property
• Personal property
• Qualified charitable distributions (QCDs) from IRA accounts

Gift Factors

There are many factors to be considered when making a gift:

• How is the asset valuation calculated? 
• What is the cost basis? 
• Is the asset considered gain or loss property? 
• What is the source of the asset to be gifted?

Tax Implications

These factors also have various tax implications. The Adjusted Gross Income (AGI) deduction differs based on the factors mentioned above and depending on whether the charity is a public, private, and operating or non-operating organization. In addition, the amount of the gift must be considered. Is a gift receipt sufficient or will a written acknowledgment be required? What type of entities are eligible to receive the gift?

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Gifting to charitable organizations requires thoughtful planning. It is not always as easy as simply writing a check.

With the giving season quickly approaching its end, now is the time to take a closer look at your giving strategy. To help sort through these considerations, I have provided a table below. It is also important to discuss these items with a qualified tax professional.

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Disclosure:

TwoTen Planning, PLLC (“TwoTen”) is a registered investment adviser offering advisory services in the State of Texas where registered] and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Opinions expressed herein are solely those of TwoTen, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful. Reproduction of this material is not permitted without written permission. Content provided herein is for informational purposes only and should not be used or construed as financial, legal, tax, or investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Discuss your specific tax issues with a qualified tax professional.

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