For many people, the end of the year is a time for making gifts – not only to family and friends but also to valued organizations such as the Medical University of South Carolina Foundation. December is also your last chance to obtain charitable deductions you can claim next April.
As you plan your year-end giving, keep in mind that contributing cash is just one way to support the Medical University of South Carolina Foundation and MUSC’s mission to improve human life in South Carolina and beyond, through education, research and patient care. Consider the following tax-smart techniques to support the Medical University of South Carolina Foundation before the end of the year.
Give appreciated securities
Despite gyrations, the stock market has been good over the years. Despite some setbacks, you’ve probably seen your investments grow over the last few years. However, selling appreciated securities will trigger a capital gains tax of 15% for most taxpayers. By transferring your appreciated securities directly to the Medical University of South Carolina Foundation instead of selling you avoid the capital gains and receive a tax deduction for the full value of the securities.
Help the Medical University of South Carolina Foundation – and yourself
You may hesitate to give an asset you depend on for income. With a “life income gift,” you can donate your asset and still receive income or payments, perhaps even increasing your cash flow. In return, you’ll obtain a current income tax deduction. In addition, if you give appreciated property, you can reduce or delay the capital gain tax. When your life income gift ends, what remains from your gift benefits the Medical University of South Carolina Foundation and MUSC’s mission to improve human life in South Carolina and beyond, through education, research and patient care.
Consider a “charitable rollover” gift from your IRA
If you are over age 70½ and have an IRA, you can direct your plan administrator to make a “qualified charitable distribution” to the Medical University of South Carolina Foundation. While you will not receive a tax deduction, the amount transferred (up to a total of $105,000 this year) will not be added to your taxable income, as it would if you made a withdrawal from your IRA. Even better: your qualified charitable distribution will count against your required minimum distribution for the year.
Start planning now
As always, your own advisors are in the best position to help you decide what is most appropriate, whether now or in the new year. Remember, too: the Medical University of South Carolina Foundation is available to work with you and your advisors to explore options or provide additional information.
