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A Trio of Tax Tips to Wrap Up 2024
Year-end is closing in, and it’s easy for your clients to get overwhelmed by all the advice floating around about what to do before December 31. Here are three reminders for your clients that typically are among the most important for year-end charitable giving.
- Give stock. Evaluate your client’s highly-appreciated stock positions and use these assets to give to a charitable organization to optimize your client’s 2024 charitable goals. Appreciated assets generally are far better charitable gifts than cash because you not only can take advantage of the income tax deduction, but also you can avoid capital gains tax.
- Use a donor advised fund (DAF). Consider recommending that your client open a DAF at HCF or a commericial DAF at financial services companies like Vanguard Charitable, Fidelity Charitable, or DAFgiving360 (fka Schwab Charitable). By making a gift to a DAF and deploying a “bundling” or “bunching” technique, your client can leverage itemized deductions (the standard deduction is very high, at least at the moment), and then use their DAF over the next few years to support their favorite charities.
- Explore a Qualified Charitable Distribution (QCD). If your client is over 70½, you should have them consider making a QCD to support a qualified charity. Each individual can give up to $105,000 in 2024, and the distributions will satisfy your clients’ required minimum distributions if they’ve also reached that age. A DAF is not an eligible recipient, but HCF offers several eligible fund options, including a scholarship fund, a designated advised fund to support a favorite charity, or a field of interest fund to support a favorite cause.
November is the time to set things in motion, so you don’t get caught up in the year-end rush. Reach out to our HCF team today! We are here for you!
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