Client Login Form CRS
July 22, 2019

Newsworthy

financial advisor

Date: July 22, 2019

Author: Marty Moore, CFP®

Read Time: 2 minutes

 

Deducting Church and Charitable Contributions Under New Tax Law

 

Are you over age 70.5 and receiving Required Minimum Distributions (RMD) from your IRA?

and,

Making church or charitable contributions?

and,

Did you claim a standard deduction on your tax return last year?

 

If yes to all three questions, then you need to be making your contributions directly from your IRA.  Why?  Because you’re no longer getting any tax benefit (deduction) for your contributions.  By using your IRA, however, you’re effectively getting a deduction because you don’t have to count the withdrawal as income.  This also has the likely extra benefit of reducing the amount of your social security subject to tax.

 

Not yet age 70.5?

and,

Making church or charitable contributions of at least $12,000 or more per year for married couples filing a joint tax return, or at least $6,000 for a single filer?

and,

Did you claim a standard deduction on your tax return last year?

and,

Have investments in a non-retirement taxable account?

 

If yes to all four questions, then we should discuss whether a Donor Advised Fund (DAF) would be helpful to you.  Using a DAF may enable you to deduct at least a portion of your contributions.

 

Neither of these two scenarios fit your situation?

 

Then remember, it’s almost always a good idea to contribute appreciated investments from a taxable account directly to the church or charity instead of cash.  After a good long stretch of positive years in the market many investors now have highly appreciated shares of stocks or funds that can be used for this purpose.

 

 

Carroll Financial named to 2019 Financial Times 300 top Registered Investment Advisors

 

Carroll Financial is pleased to announce that we have been named in the 2019 edition of the Financial Times 300 top Registered Investment Advisors.  This list recognizes the top 300 independent RIA firms across the United States.

 

This is the sixth annual FT 300 list, produced independently by the Financial Times in collaboration with Ignites Research, a subsidiary of the Financial Times that provides business intelligence on the asset management industry.

 

RIA’s were graded on six factors: assets under management (AUM), AUM growth rate, years in existence, industry certifications of key employees, SEC compliance record, and online accessibility.

 

You can access the full list and methodology behind the ranking here:

https://www.ft.com/content/44d2b2b2-6cef-11e9-9ff9-8c855179f1c4 

 

We continue to grow, and we’re proud of this recognition, but we’re most thankful for you, your confidence and trust, and for the privilege and opportunity to assist you with your investment and financial plans.

 

 

Graduation Day

 

Within the past month you probably have a child, grandchild or someone you know that graduated from high school or college.  Valedictory speeches and university commencement addresses attempt to pass on lessons learned and other wisdoms to successfully springboard graduates onto the next step of life.

 

In June 2017, Chief Justice John Roberts delivered a commencement speech at his son’s middle school graduation class.  He didn’t exactly follow the normal script.  In fact, his speech was titled: “I Wish You Bad Luck”.  Here is a brief excerpt of that speech:

 

“From time to time in the years to come, I hope you will be treated unfairly, so that you will come to know the value of justice.  I hope that you will suffer betrayal because that will teach you the importance of loyalty.  Sorry to say, but I hope you will be lonely from time to time so that you don’t take friends for granted.  I wish you bad luck, again, from time to time so that you will be conscious of the role of chance in life and understand that your success is not completely deserved and that the failure of others is not completely deserved either.  And when you lose, as you will from time to time, I hope every now and then, your opponent will gloat over your failure.  It is a way for you to understand the importance of sportsmanship.  I hope you’ll be ignored so that you know the importance of listening to others, and I hope you will have just enough pain to learn compassion.  Whether I wish you these things or not, they’re going to happen.  And whether you benefit from them or not will depend upon your ability to see the message in your misfortunes.”

 

Thank you for reading, as always, and again, thank you for allowing us the privilege to partner with you to help you achieve your financial goals.  We all surely do face misfortune from time to time, but I count your trust and the relationship we have established as one of my greatest blessings.

 

As always, thanks for reading.

 

Marty

 

 

Tax Planning

Sign up for our E-Newsletter

Market related news, financial planning information and upcoming educational opportunities all in your inbox.