Did You Know You Can Reduce Your Tax Burden Through Charitable Giving? Learn How on June 25th. - Wesbury Retirement Community

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Did You Know You Can Reduce Your Tax Burden Through Charitable Giving? Learn How on June 25th.

Charitable giving allows us to support a cause while benefiting from tax deductions. Simply writing a check is far from the only way to reduce your tax burden.

Consider the following strategic options to achieve your financial goals:

Cash Gifts: Cash donations, when unrestricted, can provide a charity with immediate liquidity, and you may get a tax deduction. If you are at least age 70½ and have an individual retirement account (IRA) you can make charitable gifts directly from your “qualified charitable distribution” (QCD) offsetting your required minimum distribution. This reduces your income tax because the QCD amount is excluded from your adjusted gross income (AGI).

Beneficiary Designations: Designate charities as beneficiaries of assets that pass by contract, such as IRAs, transfer on death accounts and life insurance. Traditional IRA accounts are subject to income tax when paid to your beneficiary. However, charities are tax exempt and do not pay income tax on amounts received from an IRA. If your estate is subject to estate tax, naming a charity as beneficiary will avoid the estate tax on the amount paid to the charity.

Charitable Remainder Trusts: To make a future gift while retaining a stream of income from the assets, consider a charitable remainder trust (CRT). When the trust ends, what is left passes to charity. Because a CRT is a tax-exempt entity, donating appreciated property, rather than selling it and donating cash, may avoid a capital gains tax on the sale of the property. To the extent gain is distributed to the non-charitable beneficiaries, they would pay tax on the gain. Any gain not distributed to the non-charitable beneficiaries, would escape taxation.

Charitable Lead Trust: A charity will receive a steady stream of payments for a specified period and then it either goes to someone else, another charity, the person or their children.

Donor Advised Fund: If you would like to make multiple gifts but don’t want complications, consider a donor-advised fund (DAF). DAF contributions are tax deductible; however, assets transferred to the DAF need not be immediately distributed to a public charity. You may recommend charities to receive distributions from the DAF.

Want to Learn More? Attend our free seminar on June 25th at 2PM at the Wesbury Campus Community Center! Or consult with your attorney or financial advisor to see what works best for you.

Join us for Planned Giving and Tax Savings Strategies with PNC Financial Services Group

Guests will learn:

  • Ways strategic planning and proper use of beneficiary designations can potentially reduce your tax burden.
  • How the expiration of the Tax Cuts and Jobs Act of 2017 (TCJA) on January 1st, 2026 could impact your tax rates and planned giving strategies.
  • Best practices for choosing an executor and preparing them to carry out your wishes.

When: Tuesday, June 25th at 2 pm

Where: Wesbury Campus Community Center, 31 N. Park Ave., Meadville, PA 16335

RSVP by calling 814-332-9009 or filling out the form below:

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