Many people make charitable gifts at the end of the year and do so with some notion of tax benefits in mind. Your gift makes a difference in the lives of the families served by Habitat for Humanity Greater Los Angeles (Habitat LA). This year, consider how the following strategies might benefit you as you plan to support Habitat LA.
1. Estimate your income and tax liability before December 31. This will help you decide at what level to give. As you know, by the time you fill out your income tax return in 2018, it will be too late to make a charitable donation for this year.
2. Consider using non-cash assets. Look at the stocks you have held for more than a year. It may be wiser to make a gift using stocks that have sizable appreciation instead of cash. You can receive an income tax deduction for the value of the stock(s) and avoid capital gain tax when the stock is sold.
3. Consider making a gift that pays income back to you. Habitat LA offers a variety of life-income plans to fit your needs. You can make a gift now, realize tax saving benefits, and receive a lifetime income.
4. If you are over 70 ½ years of age, consider making a direct transfer from an IRA or SEPIRA to Habitat LA. The transfer counts toward the minimum withdrawal rule and avoids income tax.
5. Talk to your advisor. When making any significant gift have your CPA, attorney or other advisor help you to plan and understand the impact of the gift on your estate and 2017 income tax return.
Take the time to do some planning in the weeks ahead. For more information on the benefits of making a gift to Habitat LA contact Amy Flynn, Director of Major Gifts, 310-818-5229, or email firstname.lastname@example.org.