|
With the passage of the tax reform act that basically doubles the standard deduction, and limits the deductibility of state and local taxes, many donors may no longer be able to benefit from itemizing their deductions each year. However, many such donors can benefit from “bunching” multiple years of gifts into one year, thereby pushing that year’s deductions above the standard deduction amount. For example, if a couple filing jointly customarily donates $15,000 annually to a variety of charities, they could modify that pattern by donating $30,000 every other year. That way, their standard deduction will be utilized in the off years, but in the years in which they have “doubled down”, they will have comfortably exceeded the standard deduction and derived a meaningful tax benefit from their donations. If you are at least age 70 ½ and have a traditional IRA account, you can utilize another helpful tax strategy by having qualified charitable distributions (QCDs – sometimes referred to as charitable IRA rollovers) made from your IRA custodian directly to a charity, with that amount excluded from your taxable income (and therefore not requiring an offsetting itemized deduction). The QCD can be used to satisfy your obligation to take a required minimum distribution from your IRA (the check must be cashed by the charity in that year), and can also result in other state and federal savings. As you plan your charitable giving and related tax strategies, please keep the Rotary Club of Lansing Foundation in mind. Because the specific tax implications of “bunching” or utilizing a QCD will depend upon your individual circumstances, you should consult your own tax or financial advisor about the tax treatment of such a gift. For additional general information regarding gifts to the Rotary Club of Lansing Foundation please contact Club President Dennis Fliehman or Foundation President Jim Dixon. |
We will not meet this Friday, December 28th due to the New Years Holiday.
Plan to start January off with fun and fellowship with Lansing Rotarians! The Club will be hosting a social reception for Rotarians and a guest on Wednesday, January 23 from 5:00 - 7:00 p.m. at the Kellogg Hotel & Conference Center in the Red Cedar Room. Please RSVP to Cathy if you're able to join in the camaraderie with fellow Rotarians.