2021 Tax Tips From MSV’s Vincentian Circle

Connecting Communities | April 2022

It’s that time of year again.

The annual visit to your accountant or tax-attorney to complete your 2021 IRS tax return.

The best advice you can get is that that tax planning and charitable giving should be something that you consider year-round—not just at year-end. In fact, tax planning and charitable giving should be considerations before any major financial transaction is taking place. Plus, thinking of charitable giving as a year-end activity means that you could be missing out on the ability to make a larger impact with your gifts.

Here three tips to consider when thinking of your philanthropic strategies:

Evaluate the tax benefits of gifting long-term appreciated stock versus cash. You get the fill tax deduction based on today’s value and avoid capital gains taxes.
If you are age 70½ or older, consider the potential benefits of a qualified charitable distribution (QCD). A QCD allows you to make a tax-free gift of up to $100,000 each year directly from your IRA (traditional or inherited, or inactive SEP or SIMPLE IRAs) to qualifying charities (like Marillac St Vincent Family Services). A QCD counts toward satisfying your required minimum distribution (RMD) without the federal tax consequences of being included in your AGI.
If you expect to realize significant gains in 2022 from investment transactions or the sale of a business or real estate, consider implementing a charitable giving strategy to help reduce your tax bill. Your tax and other financial advisors can help outline a number of strategies to consider.

As with all financial transactions consult with a qualified financial advisor or accountant before making a decision.

This article is brought to you by the Vincentian Circle, Marillac St. Vincent Family Service’s planned giving society, who ask you to consider remembering Marillac St. Vincent in your insurance plans, will, or trust. You can impact an entire generation by donating to Marillac St. Vincent is a 501 C 3 corporation and any donation is tax-deductible to the extent of the governing law.

Questions about how to include MSV in your plans? Visit msvplannedgiving.org or contact Daniel Summins, Director of Development at dan@marillacstvincent.org or (312) 278 4220.