ARK Wealth Insights

Donating a Car to Charity

Posted by Matthew_Hanshaw-CFP on Dec 26, 2017 8:59:53 AM

Donating a Car to Charity

If you donate your car to charity, you may claim a tax deduction for the donation if you itemize your deductions on your federal income tax return. To get started, you'll need to pick a qualified charitable organization, determine the fair market value (FMV) of your car, and obtain the necessary documentation for your donation.

Pick a qualified charity

Your donation won't be tax deductible unless you make it to a qualified organization. Generally, the most common types of qualified organizations are Section 501(c)(3) organizations such as charitable, educational, or religious organizations. To determine if an organization is qualified, you can check Internal Revenue Service (IRS) Publication 78, Cumulative List of Organizations. This publication is available on the IRS website, www.irs.gov.

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Topics: Charitable Giving

Charitable Giving

Posted by Matthew_Hanshaw-CFP on Dec 21, 2017 8:00:00 AM

Charitable Giving

Charitable giving can play an important role in many estate plans. Philanthropy cannot only give you great personal satisfaction, it can also give you a current income tax deduction, let you avoid capital gains tax, and reduce the amount of taxes your estate may owe when you die.

There are many ways to give to charity. You can make gifts during your lifetime or at your death. You can make gifts outright or use a trust. You can name a charity as a beneficiary in your will, or designate a charity as a beneficiary of your retirement plan or life insurance policy. Or, if your gift is substantial, you can establish a private foundation, community foundation, or donor-advised fund.

Making outright gifts

An outright gift is one that benefits the charity immediately and exclusively. With an outright gift you get an immediate income and gift tax deduction.

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Topics: Charitable Giving, Retirement

Charitable Contributions From IRAs

Posted by Matthew_Hanshaw-CFP on Nov 28, 2017 9:08:39 AM

Charitable Contributions from IRAs

The Pension Protection Act of 2006 first allowed taxpayers age 70½ and older to make tax-free charitable donations directly from their IRAs. By making a qualified charitable distribution (QCD) from an IRA directly to a qualified charitable organization, older IRA owners were allowed to exclude up to $100,000 annually from gross income. These gifts, also known as "charitable IRA rollovers," would otherwise be taxable IRA distributions. The law was originally scheduled to expire in 2007, but was extended periodically through 2014 by subsequent legislation and finally made permanent by the Protecting Americans from Tax Hikes (PATH) Act of 2015.

How QCDs work

You must be 70½ or older in order to be eligible to make QCDs. You simply instruct your IRA trustee to make a distribution directly from your IRA (other than SEP and SIMPLE IRAs) to a qualified charity. The distribution must be one that would otherwise be taxable to you. You can exclude up to $100,000 of QCDs from your gross income each year. And if you file a joint return, your spouse (if 70½ or older) can exclude an additional $100,000 of QCDs. Note: You don't get to deduct QCDs as a charitable contribution on your federal income tax return--that would be double-dipping.

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Topics: Charitable Giving

How Grandparents Can Help Grandchildren with College Costs

Posted by Matthew_Hanshaw-CFP on Oct 19, 2017 8:00:00 AM

How Grandparents Can Help Grandchildren with College Costs

As the cost of a college education continues to climb, many grandparents are stepping in to help. This trend is expected to accelerate as baby boomers, many of whom went to college, become grandparents and start gifting what's predicted to be trillions of dollars over the coming decades.

Helping to pay for a grandchild's college education can bring great personal satisfaction and is a smart way for grandparents to pass on wealth without having to pay gift and estate taxes. So what are some ways to accomplish this goal?

Outright cash gifts

A common way for grandparents to help grandchildren with college costs is to make an outright gift of cash or

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Topics: Charitable Giving, Lifestyle & Travel, Retirement, Taxes

Trends in Charitable Giving

Posted by Matthew_Hanshaw-CFP on May 23, 2017 10:36:01 AM

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Topics: Charitable Giving

Charitable Giving: Smart from the Heart

Posted by Matthew_Hanshaw-CFP on Feb 21, 2017 8:00:24 AM

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Topics: Charitable Giving

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