We are in the thick of tax season, going over our 1099s, K-1s, and many other forms required to file individual income tax returns.
Now that some of us have filed our 2023 returns (on or before April 15) and others have filed for extensions (to October 15), we look for ways to ease our tax burden for 2024. For many of us, we are summoning the annual resolve to plan thoughtfully for the current year and find strategies that we can follow to create tax savings.
A popular strategy for generating tax savings is a charitable contribution. With cash or appreciated stock contributions to charities of your choice—including AFHU—you may be able to deduct all or a portion of your 2024 donations when you itemize deductions. And any gain on donated stocks will not be taxed to you. This will apply no matter when you make these gifts in 2024.
Another popular option for saving on taxes is donating long-term capital gains assets to charitable trusts, donor-advised funds, or charitable gift annuities. In doing so, your charitable contributions will be based upon the value of the assets received, and you will not be required to recognize initial long-term capital gains.
You might also consider options for reducing or eliminating the tax cost on ordinary income generated by required minimum distributions (RMD) from qualified plans. Among these options is the withdrawal of RMD funds tax-free for your direct charitable gifts (up to $105,000 in 2024)—including an option for a one-time calendar year purchase of one or more charitable gift annuities (up to a total amount of $53,000 in 2024).
While your professional advisors are the best sources of tax planning tips for 2024, the experts at the charities you support often have ideas to share with you and your advisors.
AFHU is happy to partner with you and your advisors. Don’t let another tax season come and go without exploring new ideas.
May we show you how?
Please contact us at plannedgiving@afhu.org or 212.607.8524. |
