4 Ways to Reduce Taxes With Charitable Contributions #30
What are the rules when it comes to charitable giving? Are you able to donate property or stocks? How does your giving impact your tax filing? If you are trying to navigate the complexities of charitable contributions, you’ve come to the right place! As we move right on into 2021 - an exciting new year full of possibilities - it’s also the perfect time to check in on your charitable giving strategy.
You don’t have to have it all figured out to get started. In this episode, I’ll cover four ways that savvy investors like you can use to reduce your taxes with charitable contributions. Make sure you have pen and paper close by - you are going to need it!
You will want to hear this episode if you are interested in...
The best way to make charitable contributions for tax purposes [1:30]
How deducting a charitable gift works [3:00]
The parameters for donating cash [7:00]
Donating stock or property [10:00]
Tax benefits for small businesses [13:00]
What is a QCD? [15:30]
Closing thoughts [20:00]
4 Ways to Reduce Taxes with Charitable Giving
As a society, we have determined that charitable giving is worth encouraging and supporting. Why not take advantage of tax rules that allow you to maximize your giving and reduce your tax costs? If you want to maximize your giving and make your money go further, here are four ways to reduce your taxes with charitable giving.
Donate and deduct up to $300 in cash contributions to a qualified charity per person.
Donate property like used furniture to a charity - you can deduct the market value.
Donate cash and/or property (that has appreciated) to a qualifying charity.
Donate your total adjusted gross income in cash so you can claim no income.
Make sure you keep a close eye on your tax return - your tax return needs to be itemized to qualify for many of these deductions. If you own your own business, it would also be wise to look into the qualified business income deduction (QBI). The QBI is a tax deduction that allows eligible self-employed and small-business owners to deduct up to 20% of their qualified business income on their taxes.
Making the most of your investments and your giving
So there you have it, I hope you are able to get 2021 started in the right direction with your charitable giving. As we eagerly anticipate what this new year has in store for us, I’d like to invite you to join me as I continue to bring tips, insights, and lessons I’ve learned over the years in my role as a financial professional. Please make sure to subscribe and share any of these episodes that you find helpful - you never who will benefit!