SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online tax guide so I can thank them personally.
2023 Tax Planning Guide
Charitable Contributions
Donations of goods to charity are valued at their market value at the time of donation. You can’t claim the price you paid for the item.
Remember all donations of goods with a market value greater than $250 must have a receipt from the charity, indicating the name of the organization and the description of the non-cash donation.
When donating to charity, ensure the charity is qualified by searching the IRS database. Only donations qualified by the IRS are eligible for tax deductions.
STEP UP IN BASIS
A new fair market value is established for assets received after a donor’s death—a step up in basis—but there is no step up in basis for gifts received during a donor’s life. The step-up in basis sets a new starting value for inherited assets, which can make a big difference if the assets have appreciated significantly.QUALIFIED CHARITABLE DISTRIBUTIONS (QCD)
Taxpayers who have reached age 70 ½ can donate up to $100,000, indexed to inflation starting in 2024, of taxable IRA distributions directly to qualified charities. This satisfies the minimum distribution requirement and is excluded from taxable income. Also new is a tax-free, one-time $50,000 limit in 2023 made directly from an IRA to a life income plan. This limit is indexed to inflation in 2024. Making a QCD can potentially lower your income tax, net investment income tax and additional Medicare tax.CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Ronald L Tharp, PC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.