{"id":133001,"date":"2024-12-03T23:30:54","date_gmt":"2024-12-03T16:30:54","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=133001"},"modified":"2024-12-03T23:30:54","modified_gmt":"2024-12-03T16:30:54","slug":"why-donating-cash-wont-offer-the-biggest-tax-break-on-giving-tuesday","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=133001","title":{"rendered":"Why donating cash won&#8217;t offer the biggest tax break on Giving Tuesday"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108070020\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Medianews Group\/orange County Register Via Getty Images | Medianews Group | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>It&#8217;s easy to swipe your credit card or send a check when <a href=\"https:\/\/www.cnbc.com\/2024\/11\/26\/maximize-tax-breaks-charitable-giving.html\">donating to charity<\/a>. But you could score a <a href=\"https:\/\/www.cnbc.com\/taxes\/\">bigger tax break<\/a> by gifting another asset.<\/p>\n<p>Some 34 million U.S. adults <a href=\"https:\/\/www.givingtuesday.org\/blog\/3-1-billion-in-giving-millions-united-around-generosity-to-celebrate-givingtuesday-2023\/\" target=\"_blank\" rel=\"noopener\">gave $3.1 billion<\/a> for Giving Tuesday 2023, up by 0.6% from 2022, according to estimates from GivingTuesday Data Commons.<\/p>\n<p>Profitable stock is &#8220;one of the best targets for charitable giving&#8221; if the organization can accept it, said certified financial planner Michael Lofley with HBKS Wealth Advisors in Stuart, Florida. He is also a certified public accountant.<\/p>\n<p>&#8220;If you donate the stock directly to charity, you don&#8217;t owe taxes on a sale, and neither does the charity when they sell it,&#8221; he said. &#8220;Everyone wins except the IRS.&#8221;<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"SpecialReportArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">More from FA Playbook:<\/h2>\n<div class=\"group\">\n<p>Here&#8217;s a look at other stories impacting the financial advisor business.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>When filing taxes, you claim the bigger of the standard deduction or your total itemized deductions. The latter may include charitable gifts, medical expenses, state and local taxes capped at $10,000, and more.<\/p>\n<p>Since 2018, there&#8217;s been a higher standard deduction, and only about 10% of taxpayers <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/p4801.pdf\" target=\"_blank\" rel=\"noopener\">itemized tax breaks<\/a> on 2021 returns, according to the most recent IRS filing data.<\/p>\n<p>For 2024, the\u00a0<a href=\"https:\/\/www.cnbc.com\/2023\/11\/09\/irs-here-are-the-new-income-tax-brackets-for-2024.html\">standard deduction<\/a>\u00a0is $14,600 for single taxpayers and $29,200 for married couples filing together. Your total itemized deductions must exceed those thresholds to claim the charitable deduction.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>Cash gifts are &#8216;not usually the most tax-effective&#8217;<\/h2>\n<div class=\"group\">\n<p>&#8220;While giving cash is great, it is not usually the most tax-effective method&#8221; for donations, according to CFP Mitchell Kraus, owner of Santa Monica, California-based Capital Intelligence Associates, where he specializes in charitable giving.<\/p>\n<p>If you&#8217;ve owned profitable investments in a brokerage account for more than one year, you&#8217;ll pay long-term capital gains taxes when selling the assets, assessed at 0%, 15% or 20%, depending on your taxable income. Plus, there&#8217;s a <a href=\"https:\/\/www.cnbc.com\/2023\/07\/05\/how-to-avoid-the-net-investment-income-tax-for-2023.html\">3.8% investment surcharge<\/a> for higher earners.<\/p>\n<\/div>\n<div class=\"group\">\n<p>By donating your appreciated assets, you&#8217;ll avoid capital gains taxes on growth. Generally, you can deduct the market value of the investment, assuming you&#8217;ve owned it for more than one year. Itemizers can claim a deduction capped at 30% of adjusted gross income for public charities.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>Consider &#8216;stacking deductions&#8217;<\/h2>\n<div class=\"group\">\n<p>With a higher standard deduction, investors often bunch donations of profitable investments, experts say.<\/p>\n<p>Donors may consider &#8220;stacking deductions in alternating years,&#8221; to exceed the yearly standard deduction, said CFP Paul Penke, client portfolio manager and operations director for Ironvine Capital Partners in Omaha, Nebraska.\u00a0<\/p>\n<p>One way to achieve that is by opening a so-called <a href=\"https:\/\/www.cnbc.com\/2023\/11\/27\/why-wealthy-people-use-donor-advised-funds-for-charitable-gifts.html\">donor-advised fund<\/a>, according to Penke. These investment accounts offer an upfront deduction and flexibility to make future gifts to eligible nonprofits.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2024\/12\/03\/giving-tuesday-donate-cash.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Medianews Group\/orange County Register Via Getty Images | Medianews Group | Getty Images It&#8217;s easy to swipe your credit card or send a check when donating to charity. But you &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=133001\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-133001","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/133001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=133001"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/133001\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=133001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=133001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=133001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}