www.sfmnow.com Open in urlscan Pro
35.194.29.129  Public Scan

Form analysis
3 forms found in the DOM

GET https://www.sfmnow.com/

<form method="get" action="https://www.sfmnow.com/" role="search">
  <input type="text" name="s" placeholder="Search..">
</form>

GET https://www.sfmnow.com/

<form method="get" action="https://www.sfmnow.com/" role="search">
  <input type="text" name="s" placeholder="Search..">
</form>

GET https://www.sfmnow.com/

<form method="get" action="https://www.sfmnow.com/">
  <input type="text" name="s" placeholder="Search">
</form>

Text Content

 * Search
 * (706) 434-8113
 * Client Login


 * Services
   * Financial Planning
   * Retirement Planning
   * Investment Management
   * Estate Planning
   * Tax Planning
 * About
   * Why Us?
   * Our Team
   * Our Process
   * Our Story
   * FAQs
   * Community Support
   * Events
   * Client Summary
 * Insights
   * Blogs
   * Resources
   * Market Commentary
   * Videos
   * News
 * Tools
   * Risk Survey
   * Retirement Readiness Quiz
   * 401(k) Calculator
   * Roth vs. Traditional IRA Calculator
   * SECURE Act RMD Calculator
 * primary-menu

CONTACT US


 * Services
   * Financial Planning
   * Retirement Planning
   * Investment Management
   * Estate Planning
   * Tax Planning
 * About
   * Why Us?
   * Our Team
   * Our Process
   * Our Story
   * FAQs
   * Community Support
   * Events
 * Insights
   * Blogs
   * Resources
   * Market Commentary
   * Videos
   * News
 * Tools
   * Risk Survey
   * Retirement Readiness Quiz
   * SECURE Act RMD Calculator
 * primary-menu


3 NONTRADITIONAL WAYS TO GIVE THAT STILL QUALIFY FOR A TAX DEDUCTION

Posted on November 3, 2022
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin
Created with Sketch. mail Created with Sketch. print Created with Sketch.

Kevin Oleszewski, Senior Wealth Planner

‘Tis the season to give. In fact, 37% of charitable giving occurs during the
last quarter of the year — 20% of it in December alone, according to a survey
conducted by the Blackbaud Institute. And while the holidays are traditionally a
time to reflect on our blessings and help those less fortunate than ourselves,
there’s another factor influencing the timing of these donations — and that’s
the goal of minimizing a tax bill.

Of course, any charitable donation should be driven by altruism and the desire
to make a difference. The great news is that we’re a generous society. Despite
the uncertainty of the past few years, giving from individual donors remains on
the rise. The Blackbaud Institute survey found giving increased 9% in 2021 over
2020, with overall giving rising 19% since 2019.

However, there’s nothing wrong with embracing the opportunity to help your own
finances while helping others. While most donors give the conventional way, via
a direct cash gift, there are other less traditional but impactful ways to give
that can also provide a boost to your tax strategy.


THREE TAX-ADVANTAGED DONATION STRATEGIES TO CONSIDER


1. CREATE A DONOR-ADVISED FUND (DAF)

A DAF is an excellent way to achieve an immediate tax deduction without feeling
obligated to give an entire gift at once. With a DAF, you contribute assets —
cash, real estate, stock, even cryptocurrency — to a fund you establish through
a custodial account, which then becomes a charitable account you personally
control. Once open, you can start making gifts right away or you can leave the
money in there indefinitely, potentially taking advantage of growth as you
determine how you want to spend it.

The entire amount of your initial donation to the DAF is deducted the year you
establish it, even if you’ve yet to choose a charity. That makes it a savvy way
to offset sky-high taxes you otherwise might owe in a year when you have a
particularly high level of income.

Here’s an example: Let’s say you intend to gift $10,000 a year over four years.
You can put $40,000 into the DAF today and get the entire deduction, yet still
maintain your regular schedule of making a $10,000 gift each year.

This strategy also can protect you and your money in case the charity changes
policies or otherwise aligns with activities or positions you disagree with.
Although the gift to the DAF is irrevocable, you can redirect the remaining
funds to other causes whenever you wish.


2. USE A QUALIFIED CHARITABLE DISTRIBUTION (QCD) FROM YOUR INDIVIDUAL RETIREMENT
ACCOUNT (IRA).

If you are age 70 ½ or older, you can transfer money from your IRA to a charity
as a qualified charitable distribution (QCD), which makes it tax-free up
to $100,000 ($200,000 if you file jointly). That can be particularly handy for
those who have to make Required Minimum Distributions (RMD), which is the
minimum amount of money you must withdraw by law from any tax-deferred account,
like an IRA or 401(k), starting at age 72. Reducing your IRA through charitable
donations also reduces your overall taxable estate, which can eventually protect
your beneficiaries from a tax hit.

This strategy can also be a savvy way to eliminate the tax liability if you
convert a traditional IRA to a Roth IRA, which some people prefer because the
money in the Roth IRA will then grow tax free. Talk to your advisor about
whether a conversion would make sense for your overall financial goals.


3. DONATE VALUABLE ASSETS THAT AREN’T CASH.

While most of us think of making donations to nonprofits in cash, there are
other advantageous ways to support an organization. For example, donating stock
that has appreciated allows you to do good for the charity and also potentially
eliminate your capital gains burden.

Here’s how it works: Rather than liquidating the stock and owing the capital
gains tax, you can donate the security directly to the organization to be
eligible for a deduction of the full fair market value, up to 30% of your
adjusted gross income (AGI).

You also can donate items like vehicles, works of art, sports memorabilia or
rare books, to name a few. Often, these are items that were bequeathed by
another person yet don’t hold value to you, personally. For example, a client of
mine once donated valuable manuscripts to a university and received a sizable
tax deduction.

The benefit again with these nontraditional assets is you will receive the
entire value as a tax deduction without having to absorb the capital gains tax
you otherwise would owe.

With a car (and potentially other goods depending on their value), work with the
charity to determine the amount of the deduction. Often, especially in the case
of a vehicle, a charity will sell the item, which means your deduction is based
on the gross proceeds of the sale. There are exceptions, such as if the charity
intends to use a vehicle for their own purposes — to deliver meals, for
example. The IRS has a handy guide to all your questions about vehicle donation
and how to determine the value of donated property. And always check with your
accountant to ensure you are complying with all legal requirements.


GIVE GENEROUSLY, BUT ALSO WISELY

No matter how you choose to give, here are three things to keep in mind.


RESEARCH THE CHARITY BEFORE DONATING

Confirm the charity you’ve chosen is a 501(c)(3), which means it has tax-exempt
status. Then evaluate other facets that are important to you, such as its
financial health, key programs, results, and accountability and transparency
policies. You can use a resource like Charity Navigator or GuideStar to compare
various charities to find one that aligns with your goals.


GET THE REQUISITE PAPERWORK

Always check with your tax planner to make sure you have the correct
documentation should the IRS come knocking. Typically, contributions of money or
goods will require a letter from the charity confirming how much of your gift
was tax-deductible. Then verify you have the required forms.

For example, you’ll need to complete Form 8283 for noncash charitable
contributions, and/or Form 1098 for contributions of motor vehicles, boats and
airplanes. You also may need a written appraisal from a qualified appraiser
depending on the value of the item. Always confirm with your tax preparer you
have the most up-to-date version of the forms and the correct paperwork.


TIME IT RIGHT

While it’s always a good time to be generous, there are some years you might
find it even more beneficial to achieve a tax deduction. Often, it’s when you
had a surprisingly high amount of income in one year — for example, if you sold
your company. That’s when conducting thoughtful tax planning can be vital to
lessen the blow, and a philanthropic donation can be a key part of that.
Remember that in order to qualify as a tax deduction, the gift must be paid
before the end of the calendar year.

Most individual itemizers can deduct up to 60% of their AGI to charity, and if
your donation exceeds that, you can carry over the remainder for up to five tax
years. However, note that tax laws and income brackets can change frequently so
double-checking you’re in compliance is always wise.

Finding creative ways to donate can benefit both you and the charity. And as you
retain the glow of doing something nice — and also receive a tax deduction — you
are liable to agree that it is better to give than receive.

Just remember to talk with your financial planner and accountant to ensure
you’re benefitting to the full extent possible.

Converting from a traditional IRA to a Roth IRA is a taxable event.

Generally, a donor advised fund is a separately identified fund or account that
is maintained and operated by a section 501(c)(3) organization, which is called
a sponsoring organization. Each account is composed of contributions made by
individual donors. Once the donor makes the contribution, the organization has
legal control over it. However, the donor, or the donor’s representative,
retains advisory privileges with respect to the distribution of funds and the
investment of assets in the account. Donors take a tax deduction for all
contributions at the time they are made, even though the money may not be
dispersed to a charity until much later.

For a comprehensive review of your personal situation, always consult with a tax
or legal advisor. Neither Cetera Advisor Networks LLC nor any of its
representatives may give legal or tax advice.

Kevin Oleszewski is not affiliated with Cetera Advisor Networks, LLC.

Share:

TwitterEmailFacebookShare
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with
Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin
Created with Sketch. mail Created with Sketch. print Created with Sketch.


RECENT POSTS


HOW TO LEVERAGE TAX-ADVANTAGED ACCOUNTS IN 2023

By Kevin Oleszewski
Kevin Oleszewski, CFP®, MST, EA, Senior Wealth Planner  As you’re setting your
new year’s goals, one that should top everyone’s list is increasing your
savings. After all, we’ve recently seen inflation at work, reminding us that
even everyday essentials can bust budg …


SECURE 2.0 ACT AIMS TO INCREASE RETIREMENT SAVINGS FOR AMERICANS

By Jamie Hopkins
By Jamie Hopkins, Managing Partner, Wealth Solutions   The SECURE 2.0 Act has
passed, making it the largest retirement legislation since the original Secure
Act hit in the late 2019.


FINANCIAL RESOLUTIONS TO TAKE INTO THE NEW YEAR

By Thomas Fridrich
Tom Fridrich, JD, CLU, ChFC®, Senior Wealth Planner Thinking about making some
New Year’s resolutions? Add financial wellbeing to your list. It’s a terrific
time to identify goals and opportunities that may put you in a better financial
position — not only in the upcoming year, …


CHARITABLE GIVING STRATEGIES IN A HIGH-INCOME YEAR

By Thomas Fridrich
Tom Fridrich, JD, CLUⓇ, ChFCⓇ, Senior Wealth Planner  The end of the year offers
an ideal opportunity to look both forward and back — reflecting on recent
achievements, while setting goals for the upcoming months. For many of my
clients, it’s also a time to review their finances and i …
1 2 3 … 93 94 95 Next


GET IN TOUCH

In just 15 minutes we can get to know your situation, then connect you with an
advisor committed to helping you pursue true wealth.

Schedule a Consultation


CATEGORIES

 * All
 * Financial Planning
 * Insurance
 * Community Involvement
 * Wealth Management
 * Goal Setting
 * Work/Life Balance
 * Life Defined
 * Infographics
 * Firm Info


REQUEST AN APPOINTMENT

In 15 minutes we can get to know you – your situation, goals and needs – then
connect you with an advisor committed to helping you pursue true wealth.

(706) 434-8113
2838 Hillcreek Drive Suite B
Augusta, GA 30909
 * 
 * 
 * 



ABOUT

 * Why Us?
 * Our Story
 * Our Partners
 * Frequently Asked Questions
 * Community Support
 * 

SERVICES

 * Financial Planning
 * Investment Management
 * Retirement Planning
 * Estate Planning
 * Tax Planning
 * 

INSIGHTS

 * Articles
 * Videos
 * In the News
 * Guides
 * Glossary
 * 

Client Login
Client Summary

 

 

The content is developed from sources believed to be providing accurate
information. The information in this material is not intended as tax or legal
advice. It may not be used for the purpose of avoiding any federal tax
penalties. Please consult legal or tax professionals for specific information
regarding your individual situation. The opinions expressed and material
provided are for general information, and should not be considered a
solicitation for the purchase or sale of any security.

Forbes Best-in-State Wealth Advisor: Awarded to Paul West (2018, 2021). The
Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research, is
based on an algorithm of qualitative data, rating thousands of wealth advisors
with a minimum of seven years’ experience and weighing factors like revenue
trends, assets under management, compliance records, industry experience, and
best practices learned through telephone and in-person interviews. Portfolio
performance is not a criteria due to varying client objectives and lack of
audited data. Neither Forbes nor SHOOK receive a fee in exchange for rankings.
Research summary as of 37,725 nominations received, based on thresholds – 15,854
invited to complete online survey – 13,114 telephone interviews – 2,085
in-person interviews at Advisor’s location, and 619 web-based interviews.
Listing in this publication and/or award is not a guarantee of future investment
success. This recognition should not be construed as an endorsement of the
advisor by any client.

Investment advisory services offered through CWM, LLC, an SEC Registered
Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide
partnership of advisors.

Copyright 2023 CWM, LLC. All rights reserved. This content cannot be copied
without express written consent of CWM, LLC. Wealth Designed. Life Defined. is a
registered trademark of CWM, LLC and may not be duplicated.

Additional information about CWM, LLC and our advisors is also available online
at www.adviserinfo.sec.gov. You can view our firm’s information on this website
by searching for CWM, LLC or by our CRD number 155344.

Carson Privacy Policy | Terms of Use

By continuing to use this site, you consent to our use of cookies.
ACCEPT
Manage consent
Close

PRIVACY OVERVIEW

This website uses cookies to improve your experience while you navigate through
the website. Out of these, the cookies that are categorized as necessary are
stored on your browser as they are essential for the working of basic
functionalities of the ...
Necessary
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly.
This category only includes cookies that ensures basic functionalities and
security features of the website. These cookies do not store any personal
information.
Non-necessary
Non-necessary
Any cookies that may not be particularly necessary for the website to function
and is used specifically to collect user personal data via analytics, ads, other
embedded contents are termed as non-necessary cookies. It is mandatory to
procure user consent prior to running these cookies on your website.
SAVE & ACCEPT


✓
Thanks for sharing!
AddToAny
More…