“Life’s persistent and most urgent question is “what are you doing for others?”
– Martin Luther King Jr.
We believe in giving back with both our time and resources. In fact, ‘giving’ is one of our core principles and we strongly believe in paying it forward. Over the years, we’ve found alignment in this with many of our clients and we strive to help them make the most of their charitable donations.
Are you philanthropic? Do you give to your church, a hospital, school or another organization that is operated for charitable purposes? Here are a couple of ways your kindness can benefit both you and your charity of choice.
- Low basis stock – If you have low cost basis investments, give the investment (or part of it) to a charity. The charity doesn’t pay taxes on the gain of the investment and neither do you. In addition, if you itemize your tax deductions, this may count as a tax deduction. However, be sure to give the investment itself to the charity instead of selling it first then giving the cash to the charity.
- Required minimum distributions – Are you of the age required to take a distribution out of your retirement account? If so, you can have your retirement account pay the charity directly and you will not need to count the amount of the distribution as income for the year. Again, be sure that the retirement account pays the charity directly and that the distribution never touches your account.
These are two ways to give that are more tax friendly than giving cash directly. However, keep in mind there are limitations on how much can be deducted from your taxes but you may also be able to carry it forward. Be sure to talk to a tax professional or financial planner before finalizing the donation to see if the situation is right for you and remember, you can always reach out to our affiliate, Collins Consulting Services for tax advice, or to me directly for holistic planning needs.
Contact us at 844-487-3115 about any of your current retirement or investment questions or needs and we will be happy to answer them to keep you and your family on the path to generational prosperity.
Cody is CERTIFIED FINANCIAL PLANNERTM. His work experience includes assisting high net worth clients plan around their goals, and developing an all-encompassing strategy to help accomplish those goals. Cody joined TS Prosperity Group in 2017. As an Investment Strategist, in addition to doing all of the financial planning, Cody sits on the Investment Committee and helps with the research, investment recommendations, and portfolio construction. His role also includes taking the message from the Investment Committee and delivering it to the client in a way that makes sense. Cody comes from a rural farming community in Idaho. He earned a Bachelor’s degree in Business Administration with an emphasis in Investment Science and Portfolio management from the University of Nebraska at Omaha (UNO). He also completed a MBA degree from UNO with an emphasis in Risk Management.