RECENT NEWS2023-2024 Year End Charitable Giving
December 2023 Dear Valued Client and Friend,
We understand that many of you do not have any extra funds this time of the year because you live from paycheck to paycheck; the economy has not been good and it has presented many challenges. However, I would be remiss to not consider those of you who do have some extra money and what ways to reduce your tax liability. One good way is to take advantage of very generous levels of deductions by giving to various charitable non profit organizations. Gratitude on the gifts you have received. Please consider the following ways: YEAR END GIVING 1. If you are 73 or older you have until December 31st to take your RMD from your IRA and other qualified retirement accounts. Missing this deadline can result in large penalties of up to 25%. 2. You can make QCD from your IRA of up to $100,000 by giving directly to charity and twice this amount if you're married. QCD can be made starting at age 70 1/2. You don't have to wait until you are 73. 3. Donate appreciated non cash assets held longer than one year including securities, restricted stock and real estate. This way you eliminate the capital gains tax and can receive a deduction up to 30% of your adjusted gross income. Cash contributions can be deducted up to 60% of your adjusted gross income. 4. If you lost money on your investments this year consider taking the losses. You can replace them in the near future with similar investments. You can use these losses against gains plus an additional $3,000. You can claim a charitable deduction if you donate to a charity. 5. If your employer has a matching program, take advantage of it. Be careful who you give to since many non profits have high overhead and don't give enough to their mission statement. Check with CharityNavigator.org which is the best evaluator. These are just a few of my thoughts. Please make sure you work with a professional again this year to prepare your tax returns. Keep track of your estimated tax payments and let us know what your payments are for previous years so they are not reported for the current year. Thank you for trusting us. Sincerely, Chuck Anderson, CPA Chuck Anderson, C.P.A., Inc. chuck@chuckandersonaccounting.com 310-374-8832 |