Jewish Federation of Cincinnati

  • Donate now
  • Sign up
  • Connect

    Your Email Address

    Enter your email address to sign up for our newsletter.
  • Donate Now
  • Connect
  • Connect

    Your Email Address

    Enter your email address to sign up for our newsletter.
  • Log In
  • facebook
  • twitter
  • vimeo
 

Debra Steinbuch — Your Impact

November 15, 2021 | 0 Comments
Tweet
Share
Share
0 Shares

Key Considerations for Year-End Tax Planning in 2021

For most donors, deploying end-of-year charitable giving strategies that are based on the presumption that the tax rates are not likely to change materially in the coming year continues to make good sense.

·   Use appreciated assets to make a charitable gift in 2021.  As in previous years, gifts of appreciated assets (stock) remain a best practice. With the strong bull market likely to continue and the proposed retroactive increase in the capital gains tax rates, charitable donations of appreciated property are more valuable than ever, providing not only a possible deduction to the donor but also the potential to avoid the higher capital gains tax.

·   Consider donating to a Donor-Advised Fund (DAF) this year for maximum flexibility.  2021 is an excellent year to take advantage of the flexibility provided by a DAF.  Consider “bunching” multiple years worth of charitable gifts into one year into the DAF to get over the standard deduction and thereby provide an opportunity to itemize. Tax rates will likely not change in 2022, so the sooner donors capture the dollar value of the tax deduction, the better.  Donate appreciated property in order to escape capital gains taxation forever. The Jewish Federation of Cincinnati has offered Donor-Advised Funds for over 35 years and is happy to assist.

·   Charitable donations of cash may be useful if offsetting a large portion of taxable income. 2021 might be the last year you can use a charitable donation of cash to offset more than 60 percent of your adjusted gross income. For taxpayers who are in a position to make a significant charitable gift, this may provide an opportunity. Note that contributions in excess of 60 percent of adjusted gross income cannot be made to a DAF, so careful planning must be used when deducting DAF and non-DAF gifts.

·   Look into a Qualified Charitable Distribution (QCD) from an IRA. A QCD is an attractive option because it can satisfy the annual Required Minimum Distribution (RMD) from an IRA for those over 72 without incurring income tax. For those who do not itemize deductions (over 90% of donors), this is an easy way to make a “tax-free” charitable contribution.

As with any significant tax and charitable planning, it is always advisable to carefully consider potential changes in the context of your complete financial profile. 

Disclaimer: The Jewish Federation of Cincinnati does not provide tax advice. Please consult with your professional advisor before taking any action.


For more information about opening a Jewish Federation Donor-Advised Fund, contact Mindy Garvey at mgarvey@jfedcin.org or click here to learn more. 



Thanks for caring about our community and what we do.

Stay connected: sign up for our newsletter here.



Tweet
Share
Share
0 Shares

you might also be interested in:

No related posts.

Tweet
Share
Share
0 Shares

Leave a Reply Cancel reply

  • Blog Home
  • Our Bloggers




    Danielle V. Minson
    CEO
    Raising the Bar






    Ari Ballaban
    JCRC Director
    In Conversation






    Debra Steinbuch
    Chief Development Officer
    Your Impact






    Jaynie Levinson
    Jaynie Levinson works to create networking and engagement opportunities that attract and retain Jewish young adults in Cincinnati.





    Israeli Chronicles
    Connecting Israel & Cincinnati


COMMUNITY RESOURCES

  • Career Center
  • Cincy Journeys
  • Community Calendar
  • Community Directory
  • COVID-19 Hotline
  • COVID-19 Resource Hub
  • Create Your Jewish Legacy
  • Interest Free Loans
  • PJ Library

QUICK LINKS

  • 2019 Community Study
  • Accessibility Statement
  • Donor-Advised Funds
  • Jewish Holiday Calendar
  • Make a Gift of Stock
  • Media Resources
  • Online Rules of Conduct

CONTACT US

Jewish Federation of Cincinnati
8499 Ridge Road
Cincinnati, OH 45236

5139851500
info@jfedcin.org

CONNECT

Sign up for updates

The Jewish Federation of Cincinnati has received a 4-star rating of "exceptional," the highest possible, from Charity Navigator. The Jewish Federation of Cincinnati is a 501(c)(3) organization.

Copyright © 2023 Jewish Federation of Cincinnati. All Rights Reserved.

Powered by FEDWEB ® Central Privacy Policy Terms of Use