The Gifting Time of Year

Retailers lose no opportunity to advertise and promote “discounts” for gift items, especially during the holidays. If you and your family like to be smart about how you spend your money, keep in mind that if you structure your charitable gifts correctly, you can help others while locking in a discount for yourself—not just during the holidays but all year long. The discount for gifting comes in the form of reduced income tax liability for you and your family.

Not surprisingly, there a number of popular strategies to consider:

  • One strategy is to donate highly appreciated stocks; doing so results in the charitable organization receiving a gift of the full value of the securities. The donor, on the other hand, avoids tax on the appreciation beyond what was originally paid for the stock.
  • Another strategy applies to those who have attained seventy and one-half years of age. You are permitted to make charitable gifts directly from your IRA account and avoid all federal tax on the funds. For some, that results in a 35% discount!
  • Families often choose to establish a donor-advised fund (DAF). Money that is contributed to the fund is typically added to Itemized Deductions for annual tax-reporting purposes. Furthermore, DAF’s allow parents to teach children about money, philanthropic values, and such funds provide the opportunity for each family member to select the charity to which they would personally like to donate.

Please share your ideas for gifts that allow you to experience the joy of giving—perhaps with discounts that help you, too. Feel free to contact us at any time for assistance. We are available at or by phone 610.687.3515

Our Entrust Financial team wishes you a marvelous holiday season and a healthy and prosperous New Year!

Past performance is no guarantee of future results. International investing includes special risks, including but not limited to the possibility of substantial volatility due to currency fluctuation and political uncertainties. Diversification does not guarantee a profit nor protect against a loss. This material should not be considered tax, financial, or legal advice.
Share This With Your Network. Choose Your Platform!

Subscribe to Our Blog

Entrust Financial’s Second Opinion Service

Personal Affairs Inventory