CARES Act Expands Tax Deductions for Charitable Giving
New Gifting Opportunity for Non-Itemizers
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Deferred Gift Annuities
- Lifetime income when you need it
- Flexible start dates
- Immediate tax deduction
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Did you know there are creative ways to support Pomona College? Ways in which Pomona College, you and your loved ones all benefit at the same time?
Such giving techniques are called "planned gifts," because with thoughtful planning, you create win-win solutions for you and Pomona College. For example:
- You can make a gift that costs nothing during your lifetime.
- You can give stock and realize larger tax savings.
- You can get a monthly paycheck for life in return for your gift.
- You can donate your house, continue to live there, and get a tax break all at the same time.
- You can make a gift that protects your income as you age, insurance for your longevity.
Same Gift, Better Deduction
We've told you that a donation using appreciated securities produces a charitable deduction in the amount of the full, fair market value of the stock, with no liability for capital gains -- a great tax benefit!
So why give Pomona College cash if you could give stock? Because you may be able to take advantage of one tax benefit that a gift of cash offers.
A $10,000 gift of cash produces the same deduction as a $10,000 gift of appreciated securities or other assets. However, the IRS allows you to claim the deduction for the cash gift up to 50 percent of your adjusted gross income ("AGI" -- the figure at the bottom of the first page of Form 1040. See Glossary for full definition). The gift of stock may only be claimed up to 30 percent of AGI.*
So if this will be a high earnings year for you, you will be able to offset more taxable income with the deduction from a cash gift.
We can help you determine which gift asset will work harder for you.
* Deductions in excess of the percentage limits aren't wasted -- the balance may be claimed during the five years after your gift is made.
Read more... , email us, or contact us at (909) 621-8143 or (800) 761-9899.