As 2020 recedes in the rear-view mirror, we turn our attention to the road ahead. No one can say what awaits but we know, with your help, we will continue to guide patients and their families through their most difficult stages of life, providing extraordinary, compassionate end-of-life care to our community.
As you begin your giving plans for this year and assess your 2021 goals, consider these tax-smart techniques.
Give Appreciated Securities
Recent years have generally been good ones for stocks in particular. Although many people have seen their investments grow significantly, selling appreciated shares triggers taxation that can exceed 20 percent of the capital gain. By transferring them instead directly to TCH you avoid tax on the gain and receive a tax deduction for the full value of the stock. Thus, the value of your gift to us may far exceed its net cost to you.
Note: If you want to provide support for TCH using securities worth less than you paid for them, you should sell them and contribute some or all of the cash proceeds. You can then use the loss on the sale to offset other income.
Help TCH - and Yourself
You may hesitate to give an asset you depend on for income. Through a “life income gift” such as a charitable remainder trust or charitable gift annuity, you can donate the asset and still receive payments, perhaps even increasing your cash flow. In return, you’ll obtain a current year tax deduction. In addition, if you give appreciated property, you’ll reduce or delay capital gains taxation. And when the arrangement terminates, what remains from your gift benefits TCH.
Consider an “Charitable Rollover” Gift from Your IRA
If you are over age 70½ and have a traditional IRA, you can authorize the administrator to make a direct transfer of funds to TCH. While you will not receive a tax deduction, any amount transferred (up to a total of $100,000) will not be added to your taxable income, as it would if you made a withdrawal. The gift amount can even count against your required minimum distribution, to the extent you have not already taken it for this year.
Start planning now
As always, your own advisors are in the best position to help you determine what would be most appropriate, whether now or in the new year. Remember, too: Treasure Coast Hospice is available to work with you and your advisors at no cost, to explore options or gather additional information. Contact our Office of Planned Giving.
