Broker Check

Gifting, Minimum Distributions and Taxes, Oh My!

| April 03, 2017
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This time of year, I have a lot of discussions with clients regarding the amount of taxes they were required to pay for the prior year. A number of my clients are at the stage of life when they are required to take an annual distribution from their IRA in order to meet minimum distribution requirements. Additionally, a number of them contribute to their chosen charities or churches on a regular basis.

  • For client over the age of 70, there’s a special tax provision that permits contributions (up to $100,000) from an IRA to a chosen charity, and the distribution does not have to be reported on taxes.
  • Another option available is to gift appreciated securities to a chosen charity or church. The capital gains on the sale of the assets will not have to be recognized, but the client will still receive full gifting credit for the present value of the gift.

 I am not a tax professional and this is not intended as tax advice. I do advise my clients to discuss these options with their tax advisor and I encourage you to do the same.

 

Happy upcoming tax day,

Chuck Furr, CFP®, AIF®

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