Q&As – Gifts That Reduce Your Taxes
This week marks the start of the last quarter of 2020. There is still time for you to be able to increase your potential impact AND reduce your taxes. You may be able to take advantage of significant tax benefits by giving non-cash assets, such as stocks, real estate, machinery or commodities to the Beacon Hill Foundation.
Q: Can I give a gift to the Beacon Hill Foundation from my IRA?
A: Absolutely! If you are 70 ½ or order, gifts from your IRA are smart, tax-wise ways you can support the mission of the Beacon Hill Foundation! Not only do these gifts satisfy your required minimum distribution, but they also reduce your taxable income.
To learn more about making a gift through your IRA and other smart and powerful giving options, contact Andi Allen, Foundation Director, at 616-608-8285 or email@example.com
Q: What are the benefits to giving stock, real estate or other non-cash assets to the Beacon Hill Foundation?
A: By giving non-cash assets, you can…
- Receive a fair market value deduction at the time of your gift and avoid tax liability on the sale of appreciated assets.
- Give assets you no longer need or want to manage (such as rental properties or vacation homes) for the benefit of ministry.
- Give from your excess resources without restricting cash flow.
- Eliminate potential taxes or complications for your heirs by giving complex or burdensome assets to ministry in the here and now.
To learn more about giving stock, real estate or other non-cash assets, contact Andi Allen, Foundation Director, at 616-608-8285 or firstname.lastname@example.org
Q: What’s my deadline for making an end-of-year IRA gift to the Beacon Hill Foundation?
A: There are a couple things to consider when making an end-of-year IRA gift to the Beacon Hill Foundation.
- If your gift is coming directly from your IRA administrator, you must complete your paperwork in time for your administrator to send a check to the Beacon Hill Foundation on or before December 31.
- If you have been given an IRA checkbook, your check must be received AND PROCESSED by December 31 in order for it to count toward your required minimum distribution. It is NOT enough that personal IRA checks are postmarked or even hand-delivered by December 31.
The bottom line, allow extra time at the end of the year to ensure your IRA gift is mailed, received and processed well before December 31.
Furthermore, since IRA checks do not include your name and look very similar to standard bank checks (which have different guidelines), it’s a good idea to alert the Beacon Hill Foundation when giving in this manner.
To learn more about making an end-of-year IRA gift, contact Andi Allen, Foundation Director, at 616-608-8285 or email@example.com
Q: I’d like to make a gift of real estate to the Beacon Hill Foundation. Is there anything I should consider before doing so?
A: Whether you are wanting to sell a vacation home, farm or rental property, giving real estate holds significant benefits. However, there are a few things you should consider when giving real estate:
- A qualified appraisal of the property by a professional is required to claim your charitable deduction on your tax return.
- The property must be given before signing any legally-binding obligation to sell.
- It is best that the property is debt-free and marketable.
To learn more about gifting real estate, contact Andi Allen, Foundation Director, at 616-608-8285 or firstname.lastname@example.org