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December 01, 2011 at 5:25 PM

By Michelle Just, V.P. of Fund Development

As the end of 2011 approaches, financial and tax planning seems more complex than ever. The world economic situation remains unsettled, the stock market seems stuck in a rollercoaster and politicians in Washington continue their partisan posturing. But with both tax and interest rates at historical lows, opportunities for income and estate tax planning remain plentiful. As you review your financial picture during the last month of the year, consider some strategies to save on taxes. As with all tax strategies, please consult with a tax professional before making any decisions.

Shift income and deductions: Try to take charitable deductions during high income years. If you expect more income or gains this year than next, make your 2012 and 2011 charitable gifts in 2011 to boost your tax deduction. If you expect large deductions in 2012, consider deferring receipt of a bonus or recognition of gain until 2012. Be sure to consult with your advisor about the impact of the Alternative Minimum Tax on your planning.

IRA Charitable Rollover Available for 2011: The IRA charitable rollover remains available for individuals over age 70 ½ through the end of 2011 and permits direct rollovers from IRA accounts of up to $100,000 to qualified public charities. The distributions are not included in the donor’s income but will count toward the required annual minimum distribution. IRA charitable rollovers can be especially attractive if you have assets in your IRA that you may be thinking of leaving to a charity, you are considering making a large one-time gift or you do not claim other itemized deductions.

Discover ways to help the Beatitudes Campus Community:  For more information on the charitable giving strategies mentioned, or other ways of giving, please contact Michelle Just, V.P. of Fund Development at 602-995-6120.

Additional Tips for Charitable Year-End Giving:

• Gifts by check are considered complete this year as long as dated and mailed by December 31, even if the charity does not cash the check until January 2012.
• Charitable commitments cannot be deducted unless actually satisfied by December 31.
• Gifts directly to a charity of appreciated property, that would produce long-term capital gains, generally provide bigger tax savings than selling the asset and donating cash. The reverse is often true for gifts of loss property.
• Start gifts of stock or mutual fund shares early; transferring shares can take time.
• Consider a planned gift, such as a charitable gift annuity, that will provide lifelong annual payments and a tax deduction or a bequest to create your legacy. 

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