Year-end financial planning strategies

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Transfer appreciated investments directly to 501(c)3 charities if you have appreciated stocks or funds. The full amount of the contribution is deductible without capital gains tax. Contact the charities directly to do this.

When funds are transferred directly to a charity from an IRA, it’s possible that less Social Security income will be taxed. Don’t forget to take at least your required minimum distributions (RMDs) from your retirement accounts or the penalty is 50 percent. Review each retirement account independently.

Both proposed tax bills double the standard deduction reducing the number of taxpayers who will itemize. Consider irrevocably contributing to a donor-advised fund through Fidelity or Schwab. Donations don’t have to been granted to specific public charities immediately and the full deduction is taken the year of the contribution.

If you want to share with less fortunate family members, consider transferring appreciated stock or funds directly to them if they are in a lower tax bracket. Cost basis follows the gift.

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