Why is my charitable donation taxed?

Why is my charitable contribution taxed?

Well planned and executed charitable donations should result in tax savings. To get the maximum benefit, you must know the rules and how the accounting for donations works. This video Q&A is a great example. The inquirer knew the rule but not the reporting requirements.

Making News…


We frequently produce Q&A columns for Florida Today and MarketWatch, a personal finance website of the Wall Street Journal, as well as pieces for Investopedia, Orlando Sentinel, Financial Advisor magazine and others. Here is a sampling from the last three months.

Derrick Chandler,CFP® helped an Orlando Sentinel reader with a question about using a Health Savings Account to pay medical bills from prior years.

Dan Moisand,CFP® continues to write for MarketWatch and Florida Today:
What are my options with an inherited IRA and 401(k)
Is an annuity a great idea? Or a tax ‘time bomb’?
Stock market blues: My investments are down; what should I do?
Should I convert my retirement accounts to a Roth?
Working seniors and Required Minimum Distributions from 401(k)s
How to donate shares to your favorite charity

In the News…


Charlie Fitzgerald, CFP® completed his four year term in December as a Board Director for the Certified Financial Planner Board of Standards, Inc. The CFP Board is the organization that grants and administers the CFP® certification in the United States. Among the accomplishments during his tenure was the most significant upgrade to the Code of Ethics and Standards of Conduct in a decade. He will remain involved to a lesser extent serving on the Campaign Development Committee of CFP Board’s Center for Financial Planning.  More specifically, he will help solicit donations for the Center which endeavors to increase diversity, attract younger entrants to the profession and increase the academic stature of the profession. Well done, Charlie. Well done.

Tommy Lucas, CFP® recently spoke to the student chapter of the Financial Planning Association at the University of South Florida.  Tommy talked about how our firm’s  100% fee-only fiduciary structure allows us to avoid the most common and problematic conflicts of interests. Since most “financial advisers”  are often product salespeople, the students were interested in what a typical day for someone starting out at a firm like ours looks like. Finally, Tommy suggested that when looking for work, an aspiring financial planner should look for leaders and experts in financial planning, a top notch client service process, a good culture, a defined career path, a general time table for advancement, and an opportunity to be a part of the succession plan of the firm.

 

Things We Found of Note


This article does a nice job of reinforcing our assertion that most “news” is just noise and if we are not careful, our desire to be informed can be detrimental to our well-being. We get so much information thrown at us, our attention turns to trying to manage the flow rather than redirect it so we don’t drown. The result can be harmful. As the author stresses, “…most of what you read online today is pointless. It’s not important to your life. It’s not going to help you make better decisions. It’s not going to help you understand the world. It’s not going to help you develop deep and meaningful connections with the people around you. The only thing it’s really doing is altering your mood and perhaps your behavior.

The Federal Trade Commission posted an article about a growing scam in which people pretend to be with the Social Security Administration (SSA). They are even able to get your caller ID to show the real phone number for SSA. The post includes a recording of what one Social Security scam sounds like. The SSA is not about to suspend your Social Security or confiscate or freeze any accounts and they will not call to threaten to suspend your benefits.

Please click this link to learn the answer to: What are my chances of being audited by the IRS?

According to a recently released study from UC Irvine, people who drank moderate amounts of alcohol or coffee lived longer than those who abstained. Researcher Dr. Claudia Kawas explained, “I have no explanation for it, but I do firmly believe that modest drinking improves longevity.”

 

 Contact Us


Moisand Fitzgerald Tamayo, LLC is an Orlando, FL and Melbourne, FL based fee-only financial planner serving central Florida and clients across the country. Moisand Fitzgerald Tamayo, LLC specializes in providing objective financial planning, retirement planning, and investment management to help clients build, manage, grow, and protect their assets through all phases of one’s life and the many transitions in between.

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Important Additional Information & Disclosures


Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Moisand Fitzgerald Tamayo, LLC-“MFT”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. 

Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from MFT. 

Please remember that if you are a MFT client, it remains your responsibility to advise MFT, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. MFT is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. Tax advice is given only to clients and only when agreed to by MFT. A copy of the MFT’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request.

Please Note: MFT does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to MFT’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

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Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results.  It should not be assumed that your MFT account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your MFT accounts; and, (3) a description of each comparative benchmark/index is available upon request.

 

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