2018 Year End Giving Under the New Tax Law
Changes to the tax law in 2018 will result in many Americans not needing to itemize their charitable giving as deductions this year. We hope that you will continue to give generously, but we also ask that you consider some other tax-friendly giving options:
- Donate your IRA distribution. If you are 70 1/2 or older, you can give your distribution to charity instead of taking it as income, thus reducing your overall taxable income. Eligible donations can be made to the Montana History Foundation through December 31st.
- Make an endowment gift and qualify for the Montana Endowment Tax Credit. The History Foundation holds several endowments that qualify for the tax credit (a dollar-for-dollar Montana income tax reduction). The tax credit allows a credit of 40% of a qualifying planned gift’s federal charitable deduction, up to a maximum of $10,000 per year, per individual.
- Give appreciated securities and forego paying tax on the appreciation (current value less your cost). Making such a gift to the History Foundation allows you to receive a tax deduction for the fair market value of the securities on the date of the gift (qualifying securities must have been held by you for at least 12 months). The tax benefit is two-fold: full fair market value for the deduction and avoidance of capital gains tax on the appreciation.
Consult your tax advisor and call us today at (406) 449-3770. There is still plenty of time before the end of this year to make your historic gift!