Take action now to save on taxes
The holiday season is the perfect time to think about charitable giving. You’ll feel great for helping others, and you’ll appreciate owing less taxes in 2023.
GIFTS OF CASH
Donate cash to Mary Washington and other charitable organizations before the end of the calendar year.
• Check for corporate matching gift programs available through your employer or your spouse’s
employer. Many are available even for retirees. If applicable, request a matching gift form from the
organization and send it to UMW with your gift.
• Satisfy your annual IRA required minimum distribution (RMD) by donating up to $100,000 this year. While you cannot take a deduction for the distribution, you’ll save by not paying taxes at your current rate. Be sure your administrator makes the distribution directly to Mary Washington.
The IRS defines a capital asset as almost anything you own. Examples include stocks, your home, land or other property, furniture, collections (stamps or coins), jewelry, and other precious metals. If the capital asset you wish to donate is something other than publicly traded stock, you may need to hire a qualified appraiser to provide an estimated value. There are several advantages to giving a capital asset to a qualified charity:
• You do not pay capital gains tax.
• The asset is no longer part of your estate; therefore it lowers taxes for your beneficiaries.
• You save the expenses of maintaining, insuring, or repairing the asset.
• You may receive an income tax deduction up to 30% of your adjusted gross income this year. If your deduction exceeds 30% of your adjusted gross income, you have up to five additional years to use the deduction.
Now is the time to check your will and various account records to confirm beneficiary information. If you have included Mary Washington in your estate plans, please contact the Office of Gift Planning so we can honor your intentions.
Visit giving.umw.edu/make-a-gift for information about cash gifts, IRA distributions, matching gifts, and direct stock transfers. For additional information and giving options, contact Jan Clarke at firstname.lastname@example.org or 540-654-2064. As always, consult with your legal and tax professionals.
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