Maximize your year-end giving
Congress is currently considering
legislation on four important tax changes. Below are details of the changes, and how you can maximize giving and savings on your 2010 taxes if these changes take place.
·
Income tax increases – individuals in the top two tax brackets could see increases next
year. If you are in these brackets, you may want to consider shifting income by December
31st and be taxed at the lower 2010 rate. In addition, a cash gift to Cornerstone will
further reduce your 2010 tax bill.
·
Capital gains increases – sale of appreciated stock in 2010 will be taxed, and may see rate increases in 2011. A stock gift in
2010 may be helpful if you plan to increase your income from sales of stock and
other sources this year.
·
Estate tax –
if this is reinstated next year, estates could be taxed up to 45%. Planned gifts can help alleviate that burden. We can send you information on several planned giving vehicles.
·
IRA Rollover
– If there is an extension of a prior provision for this year, and you
are 70 ½ or older, you will be allowed to rollover all or a portion of
your IRA minimum
distribution to Cornerstone tax-free. Although it will not appear as a deduction on your return, you will not pay any tax on the transfer.
The opportunities listed below are already in place, and available for you to take advantage of on your 2010 tax return.
·
Roth IRA
–
This year, if you convert funds from a traditional IRA to a Roth IRA you
can obtain a tax deduction if you contribute all or a portion of this
to
Cornerstone.
·
Stock gifts
–
despite what happens in congress next year, you can deduct
the full amount of appreciated stocks against your other income if
shares are transferred during 2010 to Cornerstone's Charles Schwab
account.
·
Donor-Advised
Fund – if you set up a fund for Cornerstone students before the end of this
year, you can gain a tax-deduction for the full amount of the
contribution into the fund. Grants can then be paid
out beginning in 2011. Cornerstone's relationship with
The Philadelphia Foundation can make establishing a fund simple.
To know more, contact Chris Petersen in the Development Office at (215)724-6858 extension 234.
