3 Reasons Why Giving Before Year End is a Good Idea
Did you know that recent legislation extended some temporary tax changes through the end of 2021?
- Deduction for individuals who don't itemize their taxes: Individual taxpayers can claim a deduction of up to $300 and married individuals can claim a deduction of up to $600 in contributions to qualifying charities without have to itemize.
- Increased deduction for those individuals who do itemize: In prior years, taxpayers could only itemize their charitable contribution between 20-60%. This year they can now apply up to 100% of their AGI for qualified charitable contributions.
- Are you a C-Corp? C Corporations can apply 25% of taxable income for charitable
Or please mail your check to:
Couple to Couple League
5440 Moeller Ave, Suite 149
Cincinnati, OH 45212
Capital Gains Tax
- Did you know that the S&P index roughly doubled between 2016 and 2021? Therefore, many investors have highly appreciated non-cash assets in their portfolios. So, you can donate stock that has been held for more than one year. By donating stock directly, you eliminate capital gains. This potentially increases the amount available to the charity by 20%.
- There are legislative proposals that will increase taxes on capital gains in 2022.This could mean an increase in the top capital gains tax rate for those taxpayers from 23.8% to 43.4%!
Required Minimum Distribution
- Recent legislation has made active the Required Minimum Distribution (RMD) for 2021. This was eliminated in 2020. By donating your RMD as QCH (Qualified Charitable Distribution) directly to the charity you can direct up to $100,000 per year tax free!
Please consult your tax preparer for specifics and how donating to CCL can be part of your financial plan.