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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (60231)	12/23/2017 10:28:56 AM
From: E_K_S	Read Replies (1) \| Respond to of 78954

OT - Tax and charitable giving I was planning on giving shares of stock to a charitable foundation/organization and/or fund several 529 plans. I still need to research this and not all organizations can/will take stock. The idea is to use stock that has a very low cost basis (pretty easy if you are a Buy and Hold value investor). I see there are intermediaries that will allow you to fund a "giving" account w/ your stock and then designate the organization (or person/family/beneficiary) to whom the gift is for; year and amount. I heard a description of this on a Motley Fool podcast and it sounded like a good way to use your low cost basis stock and get the maximum benefit from that from your donation. The intermidiatery (I think Schwab may have such a service) accepts the stock on your behalf and they then sell a few of those shares based on the amount and schedule you set up. Your distribution schedule can be for several years too. I believe you get the full tax benefit of the contribution based on the date you transfer your stock to the intermediary. You have to watch out for special fees (typically quite high too) if a bank trustee/administrator is used. I may be mistating the steps and/or process as I have not done more research but the general concept sounds interesting. It could help in estate planning since you could fund a percentage of your estate directed to charitable contributions and have that titled to the name of your family trust. Then it is up to the Trustee to maintain the list of the organizations that are to be funded, dates and amounts. Happy Holidays and a profitable, Healthy New Year. EKS

To: Paul Senior who wrote (60231)	12/23/2017 10:30:55 AM
From: Keith J	Read Replies (1) \| Respond to of 78954

Here's a fairly decent calculator on tax impacts. marketwatch.com Paul, regarding charitable giving I will probably accelerate some giving before year end. Going forward, I'll likely just continue giving at roughly comparable level as before despite the fact that I will no longer receive a tax benefit for doing so (at least at Federal level) and take the view that a portion of the reduced taxes I'm paying are going towards charity. With the SALT $10k limit and rapidly declining mortgage interest, we'd be pretty far away from reaching the $24k threshold - so even putting multiple years of giving into one would still leave the vast majority of the giving as not being deductible. But I can certainly see charitable giving declining overall with less taxpayers being able to itemize. KJ