As such, we reached out to Gregg Capin, CPA and Senior Advisor to CMI’s Board of Directors.
Gregg served for 40 years with Capin Crouse, LLP and also served as the accounting and trust manager of The Great Commission Foundation.
Here are Gregg’s Top 3 Tax Saving Tips for 2022 End of Year Giving:
1. Planned Gifts such as Charitable Gift Annuities and Charitable Remainder Annuity Trusts – with interest rates rising, there is increased ability to make planned gifts such as these and to receive an advantageous fixed interest rate for your lifetime, along with making a charitable gift.
2. Property, Stocks, Bonds, and Mutual Funds – Unlike 2021, the markets have been down dramatically and are still quite volatile. Still, the value of residential property has increased in many locations and making gifts of appreciated property and investments directly to a charity may be a good way to maximize impact and minimize taxes. Donating appreciated property such as investments generally results in a charitable contribution deduction for the fair value of the donated asset, avoiding income or capital gains tax above the purchase price or tax basis if one were to sell the asset and make a cash donation.
3. Gifts from Retirement Savings – Giving from retirement accounts is often an overlooked charitable giving option.
- Gifts can be made from IRA’s and other retirement plans.
- Individuals 70½ and older can direct up to $100,000 from an IRA per year through a Qualified Charitable Distribution (QCD).
- In addition, individuals 72 and older are required to take a Required Minimum Distribution (RMD) from their retirement accounts each year. Many people are not aware that they can use this as a Qualified Charitable Distribution.
As always, you should consult with your financial planning and/or tax advisors before taking any specific steps.
We trust you find this helpful. Many blessings to you and yours this season!