By Wayne Baller, Baller Financial Group of Wells Fargo Advisors
Many of us have and will be touched by Alzheimer’s. Very often people decide, as I have, to try to help by making donations to an Alzheimer’s charity. There are many different ways to do this. In this article we will touch on ways to donate now, while you are alive.
Donate cash, car or real estate
The first and most obvious way to donate is simply to write a check. Depending on your tax situation, this may result in a charitable tax deduction on your tax return. Another way to help is to donate property. This could be a car, real estate, or any other thing of value.
TIP: if the property is appreciated, transfer the title to the charity of your choice and let them sell it, thereby allowing you to avoid capital gains taxes on the sale.
Donate stock, bonds and other financial securities
You may also gift stock, bonds, mutual funds and other securities, and the same advice as above applies if the security is appreciated: gift it to your chosen organization and have them sell it so you avoid capital gains taxes.
All gifts of appreciated property in essence give you two tax benefits: charitable contribution write-off, and avoiding capital gains tax, thereby in effect giving the charity more money than if you sold it and paid taxes.
Donate your IRA required minimum distribution
Our last idea is one that works if you are over 70 ½ years old and have an IRA. At this point, you are required to take a “Required Minimum Distribution” (“RMD”) from your IRA every year. Uncle Sam (and the IRS) are basically saying they want some tax dollars, because when you pull money out of your IRA, you must pay taxes on the withdrawal.
TIP: Have your IRA Custodian send your RMD directly to the Alzheimer’s organization of your choice; in this case, you do not get a charitable write off, since the IRA money was never taxed, but you do avoid paying taxes on the RMD.
More about the Baller Financial Group
Wayne Baller is Managing Director-Investments, and Team Leader of Baller Financial Group of Wells Fargo Advisors in Dayton, Ohio. With his two sons David Baller, Vice – President, Financial Advisor and Steven Baller, Financial Advisor, Wayne serves a select group of client family relationships nationally. We can be reached at 937-224-8201.