A donor wants to make a $20,000 outright gift to your organization. What's the difference to his bottom line if he: 1) writes a check for $20,000, or 2) gifts the stock, or 3) sells the stock and gifts the proceeds?
This page breaks down the rules involved in calculating the charitable deduction according to the following topics:
The Alternative Minimum Tax is a tax meant only for the wealthy, but one that has paralyzed much of the middle class for decades. Fortunately, as of the end of 2012, it has been permanently defanged. Granted, the AMT hasn’t gone away. But this law, which has been modified 19 times since 1969, will need no more patches.
WHAT IT IS: A Qualified Terminable Interest Property Trust (QTIP) is a type of Credit Shelter Trust.
WHO IT'S FOR: A QTIP is used by couples who have taxable estates. In function, it's a marital deduction trust that limits the surviving spouse's access to and control of the trust property.
"Do you know how much it will truly cost you to make a gift?" By posing this question to prospective donors, you can raise their interest in the topic of the after-tax cost of a gift. Specifically, how big a charitable deduction will the gift let the donor take?
Because a significant portion of major giving comes about via the estate planning process, it's to your advantage to understand how and when different tax advantages come into play.
In this case, there's a key difference in the way capital gains are treated if:
Now for the fun stuff: TAXES