What to Give
Cash – Cash is the most popular form of giving because of its simplicity. You merely write a check or authorize a charge on your credit card. If you itemize your deductions on your income-tax returns, your gift is fully deductible up to 50 percent of your adjusted gross income (AGI).
Securities – Gifts of appreciated stocks and bonds that you have held for more than one year may provide you with a two-fold tax benefit. They are deductible at their full market value at the time of your gift, up to 30 percent of your AGI, providing you with an income-tax deduction and elimination of any capital-gains tax on their appreciated value. The 30 percent limit does not apply if you elect to reduce the fair market value of the property (the deduction amount) by the long-term gain, as if the property had been sold.
Real estate – Gifts of unmortgaged real estate held for at least one year are deductible at 30 percent of full market value at the time of the transfer of the property. You will not be required to pay capital-gains tax on the property’s appreciation. It is also possible for you to give the TMC Foundation only a portion of your interest in the property, whether it’s your primary residence, a second home, farm or ranch, income property or vacant land. Real estate also may be used to make a deferred gift that pays you lifetime income, or that allows you to stay in your home for the rest of your life.
Retirement plan assets – Retirement plan funds can be subject to both income tax and estate tax. You can eliminate taxation entirely by leaving retirement fund assets to the TMC Foundation. In addition, individuals age 70-1/2 and older on the date of transfer of the assets can distribute otherwise-taxable traditional and Roth IRA amounts directly to the TMC Foundation, tax-free.
Life insurance – Making a gift through a life-insurance policy can be advantageous for those age 70 and over with an existing policy they no longer need or who have excess insurance capacity. You may make an outright gift of a current policy or take out a new policy naming the TMC Foundation as owner and beneficiary. Your continuing premium payments are deductible. Contributions that exceed the AGI limits in the year you make your gift, can be carried forward to each of the following five years until the excess is used up, but not beyond that time.
No matter which type of gift you choose to make, we recommend that you seek the advice of your attorney or tax advisor to determine which strategy is most appropriate for you.
Call (520) 324-5982 for more information.
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