(909) 949-4316
(714) 547-4171
(909) 949-4316
(714) 547-4171
As you consider your year-end tax planning, we hope you will consider making good use of the income tax charitable deduction. Your 2007 year-end gift can significantly reduce your income taxes, while providing meaningful support for the Inland Empire/Orange County Unit of RFB&D.
No matter what your income, if you itemize you can almost always lower your income taxes through charitable giving. The amount of the income tax savings will depend on your tax bracket.
Consider making more charitable gifts in those years when you have the most income and are in the top federal income tax brackets. If such is the case for 2007, you may wish to consider accelerating future charitable gifts into this year. Check with your tax advisor.
Giving is of course much more than tax brackets and charitable deductions. Your charitable gifts make an important difference to what we are able to accomplish.
Here are some of the best 2007 year-end gift ideas. We would be pleased to provide you with further information. Also, we urge you to discuss your tax planning with your accountant or other professional advisor.
If you itemize, you can lower your 2007 income taxes simply by writing us a check by December 31. There is no easier way to garner a 2007 year-end charitable deduction! Make sure your envelope is postmarked by December 31. If it is, your gift will qualify as a 2007 gift even if it is not received by us until the first week of 2008.
Some employers will match charitable gifts, meaning your gifts are worth even more. If your company or firm has a matching gift program, simply enclose the form along with your check.
Gifts of cash are fully deductible - up to a maximum of 50% of your adjusted gross income for 2007. For example, if your adjusted gross income is $50,000, up to $25,000 of charitable gifts may be deducted in 2007. Any excess can generally be carried forward and deducted over as many as five subsequent years.
If you own stock it is almost always more tax wise to contribute stock that cash. This is because a gift of appreciated stock generally offers a two fold tax saving. First, you avoid paying any capital gains tax on the increase in the value of the stock. Second, you receive an income tax charitable deduction for the full fair market value of the stock at the time of the gift.
Make sure that you have owned the stock for a “long-term” period of time (this generally means that you have held the stock for more than one year) to qualify for these significant tax advantages. Your gift of stock should be postmarked by December31. In the alternative a stock broker or trust officer can arrange for a year-end gift of stock from your account.
Gifts of appreciated stock are fully deductible- up to a maximum of 30% of your adjusted gross income. For example, if your adjusted gross income for 2007 is $100,000, up to $30,000 of long-term appreciated stock and other property gifts may generally be deducted in 2007. Any excess can generally be carried forward and deducted over as many as five years.
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Gifts of Real Estate
A residence, vacation home, farm, acreage or vacant lot may have so appreciated in value through the years that its sale would mean a sizeable capital gains tax. By making a year end gift of this property instead, you would avoid the capital gains tax, and at the same time, receive a charitable deduction for the full fair market value of the property. It is also possible to make a gift of your home, farm, of vacation home so that you and your spouse can continue to use it for your lifetimes- while you receive a tax donation in 2007.
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Life income gifts
If you are considering a major gift, a “life income” gift may be an excellent year end gift. Such a gift can increase your own income!
You could transfer cash or stock to us and establish a “charitable remainder unitrust” or “charitable remainder annuity trust” that would provide you with 5% or greater annual return. This income would be paid to you and/or a loved one for life, after which the assets would be distributed to RFB&D. Through such an arrangement, you would be increasing your income and making a meaningful (and tax deductible) contribution to RFB&D at the same time.
While you’re considering your 2007 income tax savings, this may also be a good time to consider longer term tax savings. The federal estate tax can still take 40% - 50% of one’s estate at the time of death. That’s a higher tax bite than the income tax! It definitely pays to do some advance planning with your attorney and other professional advisors.
A gift through your estate, usually referred to as a "bequest," can provide significant support to RFB&D. The gift can be made by remembering the Inland Empire/Orange County Unit of RFB&D in your will or trust. Either document enables you to distribute your assets to your loved ones, as well as to RFB&D, in the amounts or proportions you indicate, while permitting you to retain control over your assets during your lifetime.
A bequest can provide the following benefits:
Your attorney may find this language helpful:
By remembering RFB&D in your will or trust, you become part of our prestigious organization wide 1948 Vision Society.
We would be pleased to provide you, your attorney, your accountant or your tax advisor with additional information and assistance. Keep in mind that this information is necessarily general in nature. You should contact your own professional tax advisor to learn how this general information relates to your individual circumstances. Thank you for your interest and support.
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Recording for the Blind & Dyslexic® • RFB&D® • Inland Empire/Orange County • 1844 West Eleventh Street, Unit C, Upland, California 91786, (909) 949-4316 • 2021 East Fourth Street, Suite 114, Santa Ana, California 92705, (714) 547-4171
