ENCORE! Gifts from IRA
A new provision of the Tax Cuts and Jobs Act passed in late 2017, which becomes effective in 2018, has doubled the standard deduction and may make itemization of deductions less beneficial to some taxpayers. This becomes a planning opportunity for taxpayers over 70 ½.
Required Minimum Distributions
If you are over 70 ½ the Internal Revenue Service requires you to withdraw a minimum amount, which is called a Required Minimum Distribution (RMD), from your traditional or rollover IRA. This amount is taxable to you.
The IRS has also created another option that may prove beneficial to many. You may instruct the IRA
custodian to send directly from the account to a 501(c) (3) charity such as Gulf Shore Opera, Inc. (GO) anamount up to $100,000 annually. Your RMD can be satisfied by contributing either partially or in total to a charitable organization such as GO.
This distribution must be sent directly from the account to GO. The distribution to GO
is not taxable to you.
If you decide to make charitable contributions directly from the custodian of your IRA to GO, you will not have that distribution added to your taxable income. Thus you get the advantage of the larger standard deduction and are still able to make a charitable contribution to GO. Whether you itemize deductions or choose the new expanded standard deduction, you will be able to use the rules surrounding your IRA to develop a simple giving strategy.
Consult your tax or legal counsel for advice. If you decide to include GO in your estate plan or name us as a beneficiary, we would find it very helpful to have a copy of that portion of the document for our records.
Legal Name: Gulfshore Opera, Inc.
Address: 3281 Golden Gate Blvd W. Naples, FL 34120
Phone: (239) 529-3925
Donations are tax deductible under Section 501(c) (3), tax ID #47-0989874.
Florida charitable solicitation #CH48511. Gulfshore Opera, Inc. is a
501(c) (3) not-for-profit corporation organized under
Section 170(b)(1)(A)(vi) of the Internal Revenue Code.