DYK? The 2020 CARES Act provides tax benefits to charitable contributions and deductions, and these benefits will not be available to take advantage of in the new year.
Here are 4 things you can do to reduce the amount of your taxable income before December 31st, and make the most of your charitable contributions for year-end giving and tax-planning.
- Taxpayers who take the standard deduction are allowed an additional deduction of up to $300 for charitable donations made in cash
- Taxpayers who itemize can deduct up to 100% of their adjusted gross income for cash donations (up from 60%) made in 2020
- Give your appreciated stocks and eliminate capital gains tax
- Fund charitable remainder trusts with appreciated property to avoid capital gains taxes
Learn more about year-end tax planning from this quick video from our friends over at CPS Investment Advisors based in Lakeland, FL.
Individuals age 70.5 or older can directly transfer a QCD to the Libertore Fund from their IRA. QCD distributions are counted toward satisfying your RMD (required minimum distribution) for the year, up to $100,000. QCDs can be excluded from your taxable income.
Distributions and charitable contributions can be sent directly to The Libertore Fund for Children, P.O. Box 5415, Lakeland, FL, 33807. Attention: Lana Swartzwelder. Our FEIN is 46-5207111.
We encourage you to consult with your attorney, accountant, or financial/tax advisor for additional information on how these charitable distributions and tax credits apply to your specific financial situation.
It's that easy to make a difference today for yourself and others.
