There’s Still Time! Your Top 6 Giving Opportunities for 2020
Don’t let this opportunity expire on you! This year only, you can deduct $300 of cash, check or debit/credit card charitable gifts without itemizing. The $300 limit is one per tax filing unit. So, married couples filing jointly only get to deduct $300 and not $600. Everyone should consider taking advantage of this special 2020 opportunity.
You can even immediately purchase new shares in the same company or fund if you want your portfolio to “stay the same.” Your portfolio doesn’t change, but the capital gain is removed. (There is no waiting period because this is gain property and not loss property, and the “wash sale” rule doesn’t apply.)
Even though IRA accounts have no required minimum distribution (RMD) in 2020, you can still make a gift directly to _______ from your IRA if you’re 70½ or older. You can give up to $100,000 each year. The benefit: This gift donates pre-tax dollars. The earned income is never taxed because it goes directly to _______ and/or your other favorite nonprofits.
IRA withdrawals during this age range create no penalties, but they are taxable. However, this year only, cash gifts can be deducted up to 100% of income. If you are already itemizing deductions this can help offset the tax impact from an IRA withdrawal.
However, this year only, up to 100% of income can be offset by charitable deductions. This includes income created by a Roth conversion. If you already have a multi-year charitable plan or pledge, donating it all this year and combining with a Roth conversion might make sense.
This year only—and unlikely of being renewed! You can deduct up to 100% of your adjusted gross income using charitable gifts of cash to an operating nonprofit such as ______. If you’ve been waiting for the opportunity to make a major gift, this could be your year.