I love your videos. I've watched dozens of them at this point and am always impressed by the value of the information you're presenting, as well as your willingness to 'get into the weeds' and go into extreme detail when appropriate. Also, though these might seem like minor points, your pacing is excellent and you always speak very clearly. A lot of people on UA-cam don't.
The problem is that for assets, only 30% of your AGI can be deducted and the rest over 5 years. So if your initial donation is not large enough to allow you to take the itemized deduction for the next 5 years or your income is not large enough in the next five years. The rest of your deduction may expire without you ever being able to use the remainder.
I would hope that you would do a video presentation on a IRA Chartable Gift Annuity which has many more advantages than a donor advised fund strategy. The benefits include (1) supporting a charity of choice, (2) offsetting RMD's up to $50,000 on a one-time basis, (3) giving more options for tax efficient Roth conversions, (4) zero taxes on the contribution, and (5) a life time income stream. Please provide a video on IRA Charitable Gift Annuities. Thank you!
Thank you for this informaiton! I know this is an old comment but I just found this video! Question - Is it just 1 charity or can you do multiple charities?
This video is very timely as I’m planning to donate highly appreciated Apple Shares to a DAF by the end of the week. However, the shares I want to donate were originally purchased at a discount through the Apple ESPP, and I have been unable to determine the impact of the discount element when gifting ESPP shares. I know if I sold the shares I would recognize ordinary income on the discount component and adjust the cost basis, but do I report that ordinary income if I gift the shares? My tax guy has asked 3 different colleagues and gotten 3 different answers.
Did you ever find out the answer to the question? As a small nonprofit, I'd also like to know the answer to be able to inform others about donating stock of this kind.
@@CibusMission actually I did find the answer eventually. It turns out the shares I wanted to donate were acquired in 2008 when the ESPP was non qualified, which means we paid the ordinary income tax on the discount when the shares were purchased. So there was no tax impact when donating them. However, if I donated shares acquired since they switched to a qualified plan I would owe the ordinary income tax though it would be relatively small compared to the size of the donation.
@@peterwright837 Thank you so much for the detailed explanation! I really appreciate it! I'm learning so, I will have to study what you wrote more! I thought it was bad that it didn't qualify, but you would've owed the ordinary income tax. But you didn't! So it was actually a very good outcome for all!
@@CibusMission yes you’re correct. Qualified or non qualified refers to the ESPP, and I believe refers to whether the plan is qualified with regard to deferring the income tax on the discount portion of the purchase or not. If a plan is not qualified you pay the ordinary income tax at the time of the purchase of the shares. If an ESPP is qualified the ordinary income tax is deferred until you dispose of the shares either through a sale or donation or even if they’re inherited I believe.
A QCD (what I think you're referring to as a direct contribution of RMD) would be a better approach (in most cases) because it gives you the full deduction of the contribution and doesn't require you to itemize.
@@SafeguardWealthManagement A one-time $50,000 IRA Charitable Gift Annuity would be even better. Please do a video on it. I am shocked that no one is discussing it.
Also, a new wrinkle with the QCD starting in 2023-24 is that if you donate the QCD up to $53,300 ( for 2024) to a charity (not a DAF) all in one calendar year, you can get an annuatized income for the rest of your life. It is usually around 5%, will be taxed as income, and can only be used once in your lifetime. The rest of the QCD requirements apply.
I love your videos. I've watched dozens of them at this point and am always impressed by the value of the information you're presenting, as well as your willingness to 'get into the weeds' and go into extreme detail when appropriate. Also, though these might seem like minor points, your pacing is excellent and you always speak very clearly. A lot of people on UA-cam don't.
I really appreciate this comment! Thank you!
The problem is that for assets, only 30% of your AGI can be deducted and the rest over 5 years. So if your initial donation is not large enough to allow you to take the itemized deduction for the next 5 years or your income is not large enough in the next five years. The rest of your deduction may expire without you ever being able to use the remainder.
Fantastic video! Graphics are awesome! Sub earned!!
I would hope that you would do a video presentation on a IRA Chartable Gift Annuity which has many more advantages than a donor advised fund strategy.
The benefits include (1) supporting a charity of choice, (2) offsetting RMD's up to $50,000 on a one-time basis, (3) giving more options for tax efficient Roth conversions, (4) zero taxes on the contribution, and (5) a life time income stream.
Please provide a video on IRA Charitable Gift Annuities. Thank you!
Thank you for this informaiton! I know this is an old comment but I just found this video! Question - Is it just 1 charity or can you do multiple charities?
What do you think about charitable gift annuities?
Can I get Tax benefits on grants distributed to the charity from the fund?
Thank you for sharing this, super helpful. So the annual management fee for DAF is billed separately, or deducted from the donated portion itself?
Great video and advice on donating assets and re-buying if you wish to continue with an asset!
Can I share this video on my non-profit website to educate people that comes there? of course all of your contact information would stay intact.
Of course
Awesome!, Thank you very much!@@SafeguardWealthManagement
This video is very timely as I’m planning to donate highly appreciated Apple Shares to a DAF by the end of the week. However, the shares I want to donate were originally purchased at a discount through the Apple ESPP, and I have been unable to determine the impact of the discount element when gifting ESPP shares. I know if I sold the shares I would recognize ordinary income on the discount component and adjust the cost basis, but do I report that ordinary income if I gift the shares? My tax guy has asked 3 different colleagues and gotten 3 different answers.
Did you ever find out the answer to the question? As a small nonprofit, I'd also like to know the answer to be able to inform others about donating stock of this kind.
@@CibusMission actually I did find the answer eventually. It turns out the shares I wanted to donate were acquired in 2008 when the ESPP was non qualified, which means we paid the ordinary income tax on the discount when the shares were purchased. So there was no tax impact when donating them. However, if I donated shares acquired since they switched to a qualified plan I would owe the ordinary income tax though it would be relatively small compared to the size of the donation.
@@peterwright837 Thank you so much for the detailed explanation! I really appreciate it! I'm learning so, I will have to study what you wrote more! I thought it was bad that it didn't qualify, but you would've owed the ordinary income tax. But you didn't! So it was actually a very good outcome for all!
@@CibusMission yes you’re correct. Qualified or non qualified refers to the ESPP, and I believe refers to whether the plan is qualified with regard to deferring the income tax on the discount portion of the purchase or not. If a plan is not qualified you pay the ordinary income tax at the time of the purchase of the shares. If an ESPP is qualified the ordinary income tax is deferred until you dispose of the shares either through a sale or donation or even if they’re inherited I believe.
I’m 70…GREAT IDEA. but WHAT’s better …doing this, or direct contribution of RMD?
A QCD (what I think you're referring to as a direct contribution of RMD) would be a better approach (in most cases) because it gives you the full deduction of the contribution and doesn't require you to itemize.
@@SafeguardWealthManagement A one-time $50,000 IRA Charitable Gift Annuity would be even better. Please do a video on it. I am shocked that no one is discussing it.
60% of your AGI if cash is donated
Excellent donor advised funds include Daffy and Fidelity Charitable
Another excellent video and discussion Eric. Thanks for providing these educational discussions. Larry, Central Valley, Ca.
Also, a new wrinkle with the QCD starting in 2023-24 is that if you donate the QCD up to $53,300 ( for 2024) to a charity (not a DAF) all in one calendar year, you can get an annuatized income for the rest of your life. It is usually around 5%, will be taxed as income, and can only be used once in your lifetime. The rest of the QCD requirements apply.