Thanksgiving is my favorite holiday. Good food. Family. A time to celebrate with those around the table, gossip about those who couldn’t make it, and, to remember those who are no longer with us. Thanksgiving offers us a break from busy schedules and daily routines to remember to be grateful and consider those less fortunate than ourselves.
Charitable Planning is an important aspects of Wealth Management. It might be a trip to the local donation station with clothes, the food bank with turkeys & trimmings, or a monetary donation to a favorite charitable cause or organization. Charitable giving ranges from simple donations like these to the use of more complex vehicles one might establish (charitable giving fund, charitable trusts, charitable foundations) to achieve their specific charitable intentions.
Donations of personal items should be valued at the lower of their cost or current market value. Cars, boats, etc., and items with a value over $5,000 require an appraisal in order to take a deduction on Schedule A, Itemized Deductions. Stocks or Mutual Funds that are publicly traded have exact values on any given date. One strategic planning technique is to donate appreciated stocks or mutual funds to avoid the capital gain. The IRS website has good information about donations. See Eight Tips for Deducting Charitable Contributions as well as many other details in Publication 526 – Charitable Contributions.