Gifting Strategies
Gifting to Family & Friends
Currently the 2024 annual gift tax exclusion is $18,000 per person. A married couple could gift a total of $36,000 ($18k each) to their son or a total of $72,000 to their son and daughter-in-law. Any annual gifts above this amount may require a gift tax form. We recommend consulting with your CPA for additional information.
Charitable Gifting
Charitable contributions may be claimed as deductions on your Schedule A of IRA Form 1040.
• Limited to 60% of your adjusted gross income on gifts of cash and 30% of your adjusted gross income on appreciated assets, such as stock
Donor Advised Funds are excellent giving tools:
• Take an immediate income tax deduction in the amount of the full fair market value when you itemize your deductions
• Eliminate capital gains taxes and the Medicare surtax, which combined could be up to 23.8%
• May be used to maximize deductions for planned giving into a single tax year
• You control when and what charities receive the funds
• Higher Tax deduction of 30% of AGI than Private Foundations at 20% of AGI
Clients over 70.5 years old may gift directly from their IRA to a charity.
• Qualified Charitable Distributions (up to $105,000 in 2024) from your IRA fulfill your annual Required Minimum Distribution (RMD).
• QCDs are not counted toward the maximum amounts deductible for those who itemize their giving on their taxes—the $105,000 can be above and beyond those limits.
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