A Perfect Time To Give
Tax Deductible contributions

Taxpayers will be affected in different ways by the changes in tax law made in December 2017.  But the Charitable Contributions deduction has been fully preserved to reduce personal income tax burdens and incentivize continued charitable giving. 

1. Personal income taxes may be reduced by up to 37% of contributions you make to qualified charities like the GPYC Foundation.
2. Estate/inheritance taxes may be reduced by as much as 40% of similar contributions.  This would mean additional tax reductions for tax payers whose estates will pay the U.S. Estate tax.
3. Qualifiedretirement funds (IRA’s and employer-plan funds) can be subject to both incometaxes and estate taxes, so the tax burden can be greater than 50% on theseinvestments.
4. Taxpayers overage 70 ½ must withdraw and pay income tax on their Required Minimum Distribution amounts, but they are allowed to send funds from the IRA directly to a qualified charity, reducing the taxable annual RMD.  Also saves Michigan tax of 4.25
5. Tax can also beavoided by contributing appreciated stock, since a deduction for the “full fairmarket value” is allowed at the federal level. No long-term capital gain tax at all.
6. Any part, orall, of the IRA funds can be paid directly to a Charitable Organization as abeneficiary upon death.
7. Other devicescan be used, such as a Donor Advised Fund, or a Charitable Annuity orCharitable Lead/Remainder Trust.  Thesemethods can be used in different ways to accomplish goals of increasingretirement income and/or tax planning.

Your own tax counsel should be able to assist in thedetails of these planning tools, but now is the time to “set sail” on the bestcourse.