Why Give? Receive Tax Benefits

When you make a planned gift, you can receive significant tax benefits. Depending on the giving vehicle, you may

1. Remove the value of your gift from your estate, which will lower the amount you pay in estate taxes. Gifts of life insurance and IRAs are fully deducted from your estate. (You also receive an income tax deduction for an IRA.) Currently, an individual can pass $1 million to heirs before entering estate tax brackets of up to 55 percent.
    
2. Deduct your gift from your current yearly income, which can lower your federal income tax for the year in which you make the gift.

• With gifts such as cash, you can deduct up to 50 percent of your adjusted gross income in the year of the gift, and if necessary, carry forward the balance of the deduction for up to five years.
• If your gift comprises appreciated securities, you receive an immediate charitable income tax deduction and avoid paying capital gains tax (thus making your gift that much larger). For appreciated securities, personal property and real estate, you can receive a deduction of up to 30 percent of your adjusted gross income for the fair market value of the asset. Note that if you fund a gift annuity or charitable remainder trust, you receive an income tax deduction in the year of the gift and remove the assets from your taxable estate. 
• If you fund a charitable gift annuity, a portion of the gift is deductible from your federal income taxes (because you receive an income stream in return for your gift). The same tax advantage applies for charitable remainder trusts, which also create a lifetime income stream.

For more information
Contact Associate Vice President for Gift Planning
Tony Duva, aduva@mcg.edu, at 706-721-1939