Unique Opportunities

Fall brings crisp weather, falling leaves, special family holidays, and the prospects of a new year and new beginning are just around the corner. In addition, we have been given some unique opportunities to help the ministries we love in 2020—as a result of the challenges many have faced this year.

There are still opportunities which may allow you to increase your generosity and help meet the needs of others who have been severely impacted. However some of these opportunities are scheduled to expire at the end of 2020. So acting now is important.

1. In 2020 every individual can deduct up to $300 of charitable gifts—even if you take the standard deduction when filing your taxes. This can provide a direct tax savings. The only requirement is that gifts must be from cash and must be made to a qualified charity.
2. If you have the financial ability to make special gifts this year, you will be allowed to deduct up to 100% of your adjusted gross income when you file your 2020 tax return. If your gift exceeds your income this year, the deduction can be carried over for future years.
3. If you have investments that have lost capital value and you wish to make a charitable gift, you can sell the investment, make a gift of the cash from the sale, and receive a charitable deduction for the full value of your gift as well as take the capital loss reducing your taxable income.
4. If you have an individual retirement account and have been taking required minimum distributions (RMDs), that requirement is suspended for 2020. If you do not need the income from your IRA for living expenses this year, you are not required to take a distribution in 2020.
5. If you plan to give real estate (land, house, vacation property, etc.) to charity in your estate plan, you may find making that gift legal now can bring you a valuable tax deduction. You can still enjoy the use of the property for the rest of your life.
6. With the stock market’s recent recovery to record or near-record levels, you may have appreciated assets that can be used to make excellent charitable gifts. With this strategy you receive a fair market value tax deduction, the ministry receives the value of the asset to further their work, and you avoid any capital gains tax on the appreciation of the gift asset.
7. If you want to learn more about some of the tax-wise giving opportunities which may allow you to do more than you thought possible to be a part of the generosity being displayed this year, we can help.