Tax Planning Tips

“April showers bring May flowers.” So goes the adage. But for many of us, April is “tax time.” Getting records to the accountant, waiting for the bad news, and hoping there is enough money to pay the balance due. April is also a time that we might be thinking of ways to save taxes a year from now.

Are you considering renewing or beginning your support of RIT? If you are, there are many ways to save taxes by doing so.

Immediate gifts with immediate tax benefit:

  • Cash gift – deductible today; immediate benefit to RIT
  • Appreciated stock – deductible today, and forgiveness of built up capital gains taxes vs if stock had been sold; immediate benefit to RIT
  • Real Property, art, other gifts in kind- deductible today, appraisals may be required; immediate benefit to RIT

Deferred gifts with immediate tax benefit:

  • Charitable Gift Annuity - in exchange for gift of cash or stock, RIT will pay fixed amount of income to donor and/or loved one for life; portion of value deductible today; benefit to RIT on death of income beneficiary.
  • Charitable Remainder Trust - similar to Gift Annuity, but income can vary from year to year; portion of value deductible today; benefit to RIT on death of income beneficiary, or after a specified number of years.
  • Gift of remainder interest in house - portion of value of house is deductible today, donor continues to live in house until death at which time title passes automatically to RIT, which will sell it. Appraisal required and subject to approval by RIT.

Deferred gift, no immediate income tax benefit, but possible estate tax benefit:

  • Bequest in a Will or Trust - no income tax deduction, but potential estate tax savings.
  • Beneficiary Designations of retirement plans (401k, 403b, IRA) or life insurance designating RIT as beneficiary; assets will pass to RIT without any income tax cost and with potential estate tax savings.

If you have questions about any of these, feel free to discuss with the Planned Giving officers at RIT:

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