Smart Gifting Strategies

December 17, 2021

Gifting strategies can help investors achieve their charitable goals while minimizing their tax burdens. Instead of gifting cash to a charity or a family member, appreciated stock can be gifted which allows the donor to avoid having to pay capital gains tax. The charity can liquidate the stock tax-free and receive the full funds. A family member, particularly younger recipients, can often sell the securities at a lower capital gains rate. For tax-deferred accounts, investors can donate from their IRAs directly to charities as Qualified Charitable Donations which are not subjected to income tax. This can help reduce the tax burden associated with required minimum distributions when the investor does not need the funds for lifestyle expenses.

At Brandywine Oak, we recognize the importance of gifting for our clients, and we help them accomplish their goals in the most tax efficient manner. To learn more about these gifting strategies, please read Kiplinger’s

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