TIPS FOR YOUR YEAR-END GIFTS

The final weeks of 2023 offer great opportunities for generous givers who also desire to optimally manage their tax situation. These opportunities come with an expiration date, some as early as December 31, 2023.

  • No Adjusted Gross Income Limitation for Charitable Deductions
    This is the ability to deduct charitable gifts that could eliminate your federal adjusted gross income for tax purposes. Financial planners believe this to be a genuine opportunity for:

    • High earners

    • Those with cash reserves

    • People with a heart for giving toward Kingdom work

      -Even non‐itemizers can deduct $300 ($600 joint filers) in charitable gifts in 2023.

  • Cash In. Cash Out. No Tax Paid.
    If you…

    • have qualified retirement assets that would normally be taxable if withdrawn,

    • are at least 59.5 years old and

    • want to make a generous charitable gift,

    … you can likely withdraw virtually any amount of cash, make a charitable gift of the same amount and pay no additional income tax.

  • Significant Financial Losses
    If you have an investment that has lost capital value, and you wish to make a charitable gift, this opportunity could be a double win. Sell the asset at a capital loss, make a gift of cash from the sale and then use the capital loss and the charitable deduction to reduce your taxable income.

  • Deduct a Gift Now and Give It Later.
    Do you own property (house, farm, or vacation home) that you would like to leave to your favorite ministry in the future? You can make the gift in 2023 but retain the use of the property for your lifetime.

  • Charitable Gift Annuity
    A Charitable Gift Annuity (CGA) is often an excellent option for those who want to be generous with Kingdom work but still need the income produced by their assets. With the CGA, you may receive an immediate tax deduction and income for life.

  • Qualified Charitable Distributions
    Sometimes referred to as a Charitable Rollover, a QCD allows you to instruct your IRA custodian to send up to $100,000 per year to a Kingdom-building ministry like Outlook. While this is not expected to change in the future, your window of opportunity for 2023 closes on December 31. Most custodians need at least a few weeks to process the distribution, so the sooner you initiate it, the better.

Thank you for partnering with what God is doing through Outlook!

NOTE: Outlook does not provide legal or tax counsel. Please consult your financial professionals regarding your unique financial situation.