Year-end tax & gift planning

During the holiday season, many of us focus on all that we have to be thankful for, and then turn our gratefulness around, directing it toward others in a spirit of giving. This season also brings the tax year to a close, so smart tax planning should be top of mind, too.

Our team can help you reduce your liabilities while extending the joy of giving – so your gifts can be of most benefit to the University of Hawai‘i and the people it serves, while helping to fulfill your philanthropic goals. Here are some simple and tax-smart strategies to consider:

Give appreciated securities instead of cash

• Benefit from long run-up in stock market – indices at all-time high
• Receive full fair market value income tax deduction
• Eliminate tax on capital gains from sale
• Easy electronic transfer of shares

Use your IRA to make tax-free distributions

• Make “qualified charitable distributions” (QCD)
• Must be age 70½ to utilize
• Counts toward “required minimum distributions” (CARES Act waives RMD in 2020)
• Available up to $100,000 per person
• Avoids unwanted income on tax return

Consider a charitable gift annuity

• Turn low-paying cash assets into lifetime fixed annuity
• Benefit from age-bracketed annuity rates – older age produces higher rate
• Sign a simple, two-page contract with UH Foundation
• Receive annuity income that is partially tax free
• Must be age 65 or older, with minimum gift of $25,000

Leverage your home equity

• Transfer all or part of home or vacation property by deed
• Retain full use of home for life
• Receive immediate and very large charitable income tax deduction
• Pass gifted portion of asset to UH Foundation after life use

We would be pleased to run illustrations for you and your tax adviser on any of the above charitable tax strategies. Remember, with planning, you save big on taxes, and UH students and programs of your choice benefit greatly.