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Posted October 10th, 2017

Why Do Individuals Make Charitable Gifts the Way They Do?

This is a gift planning question because it goes to how different individuals make charitable gifts differently. Most modest gifts and some large gifts are made in cash, which tend to be current, outright gifts. Givers of modest amounts aren’t looking to do anything fancy either in terms of what they give or in terms… read more

Posted October 4th, 2017

Tax Reform Update 10/4/17

As promised (and mentioned in this blog), the framework for the tax reform proposal by the White House, House Ways and Means Committee, and Senate Committee on Finance, was presented on Wednesday, September 27. Since that announcement, many various media outlets and financial experts have weighed in. In particular, we find this preliminary analysis by… read more

Posted September 19th, 2017

Answers to “A Gift Planning Quiz”

Click here to view original post, “A Gift Planning Quiz.” Let’s see how you did. Donor uses highly appreciated stock to pay a legally enforceable pledge. Why isn’t Donor treated as selling or exchanging the stock, so that Donor realizes a capital gain? Hint: If an individual pays a debt by transferring appreciated stock to… read more

Posted June 27th, 2017

Gift Planning to Benefit Third Parties

Third parties such as the donor’s grandchild, sibling, or housekeeper. To a large extent, gift planning depends upon the age of the individual to be benefited. For example, if the individual is a newborn grandchild and the goal is to provide future college education funds, the best planning may be to set up a purely… read more

Posted April 17th, 2017

Let’s Take a Look at the Federal Gift Tax, Part 2

Last time, we encountered the $14,000 (for 2017) annual gift exclusion, which shields up to $14,000 a year given to any one individual from gift tax. For example, in 2017 Tillie gives each of her six grandchildren a check for $14,000: there is no gift tax; Tillie is allowed six $14,000 annual exclusions. Now, to… read more

Posted April 4th, 2017

Let’s Take a Look at the Federal Gift Tax, Part 1

The federal gift tax doesn’t raise much revenue (less than 2% of the total federal revenue). Like the estate tax, it is retained today for political, not revenue-raising, purposes. It’s a complex and tricky tax. There’s no reason for a gift officer to try to grasp the whole of it; but gift planners do need… read more

Posted February 21st, 2017

“Partial Interest” Rule, Pt. 2

Read Pt. 1 of “Partial Interest” Rule by clicking here. Last time, we developed an analogy to grasp the concept of a partial interest and also learned that a charitable gift of a partial interest is generally not deductible. The analogy was a handful of uncooked spaghetti strands. The handful represents full and complete ownership… read more

Posted February 13th, 2017

“Partial Interest” Rule, Pt. 1

The partial interest rule denies a charitable deduction for many different kinds of charitable gifts, including some that are valuable. The key to understanding this rule is to grasp the concept of a partial interest. An analogy helps. Imagine you’re holding a handful of uncooked spaghetti. This is analogous, for example, to holding legal title… read more

Posted February 7th, 2017

Let’s Look at Bargain Sales

A bargain sale is the sale of an asset to charity for a price less than the asset’s fair market value (FMV). For example, a donor sells stock or real estate having an FMV of $100,000 to ABC Charity for $60,000 (selling price, or SP). Remember the meanings of “FMV” and “SP.” This situation is… read more

Posted January 31st, 2017

Stock Market Zooming Toward a Securities Giving Boom or Bust?

Last week the Dow Jones Industrials Average closed at over 20,000 points, a record high that was inconceivable eight years ago. Back in March 2009, the Dow had fallen 54 percent in 17 months, from over 14,000 in October 2007 to just over 6,500. Last week, the Standard & Poor’s 500 and the Nasdaq Composite… read more

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