Ready For Retirement [Case Study] How to Turn Charitable Giving Into $100k+ Tax Deductions
On this episode of the Ready for Retirement podcast, James discusses a strategy for increasing your tax savings through charitable giving. James gives the example of a couple who contributed $12,000 to charity every year but they were still taking the standard deduction every year on their taxes, so they were never able to reap any tax deduction benefits from their contributions.
He helped them set up a Donor Advised Fund into which they could contribute a large sum of money that could be distributed at their discretion over the next few years while providing them significant tax savings in the process. This is a great strategy for folks who do not qualify to itemize their deductions but are contributing significantly to charity throughout the year, but there are other beneficial strategies for other situations as well.
Don’t feel limited by what you “qualify for”, because you likely fall into multiple categories and a financial planner can help you navigate these dynamics.
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