If you own appreciated stock, consider meeting your 2019 financial commitment to the church by donating common stock or mutual funds to TVLC. The actual stock or mutual fund must be directly transferred to TVLC’s brokerage account. The church would subsequently sell the stock or mutual fund, and you would receive its full value towards your financial commitment. There would be no capital gains tax on the transaction, and if you itemize on your taxes, you may be able to deduct the full value of the donation. Further guidance can be provided by your brokerage firm or tax adviser.
For individuals who own a Traditional IRA and are at least 70½ years old, a tax-friendly alternative is making Qualified Charitable Distributions (QCDs) from your IRA. QCDs are available to qualifying individuals regardless if you do or do not itemize deductions on your taxes. You may be able to satisfy some or all of the IRS requirements to take annual Required Minimum Distributions (RMD’s) from your IRA. A QCD transfers money from your IRA directly to TVLC without the money being added to your adjusted gross income (AGI). Qualified individuals can donate amounts up to $100,000 annually from your IRA. Distributions from 401(k) and 403(b) accounts do not qualify. Custodians of your IRA’s, such as brokerage firm Charles Schwab and mutual funds such as Vanguard and Fidelity, can provide additional detailed guidance on QCD process.
For more details on the simple process to execute a stock or mutual fund transfer to TVLC or additional information on doing a QCD transfer from your Traditional IRA, please contact TVLC member Jon Erwin at (520) 731-2606.