Tax-Wise Strategy
Tax-Wise Strategy: How to make a meaningful gift that pays you income for life and provides a tax deduction.
Is supporting the programs you enjoy on SCETV and SC Public Radio in a meaningful way important to you? If you are at least 70 years old, I would like to introduce you to Charitable Gift Annuities. That sounds terribly formal, to be sure, but a charitable gift annuity (CGA) is simply a contract between you and the ETV Endowment of South Carolina. You make a gift of cash or stocks to the Endowment and, in return, the Endowment makes fixed payments for life to one or two individual annuitants (you, the donor). Even more simply put, you make a gift to the Endowment in the form of a CGA and then you receive a tax deduction and a guaranteed income for life. Learn more about Charitable Gift Annuities details here.
CGAs as a Tax-Wise Giving Strategy Example
Susan is 85 years old and not married. She owns a home worth $175,000 that has no mortgage. Susan has annual income from social security and an IRA totaling $75,000. She is considering a $15,000 CGA to the ETV Endowment this year. Susan would most likely benefit from the CGA’s deduction if she itemizes her deductions in the year she funds the CGA. She gets a higher tax deduction, as well as income, from the CGA.
|
Not Itemizing |
Itemizing |
|
|
Standard Deduction |
$12,000 |
$0 |
|
State/Local Inc. Tax Deduction |
$0 |
$4,400 |
|
Property Tax Deduction |
$0 |
$2,000 |
|
CGA Charitable Deduction |
$0 |
$8,547 |
|
TOTALS |
$12,000 |
$14,947 |
The ETV Endowment of South Carolina cannot provide individual tax advice. Consult your attorney or financial advisor to be sure a charitable gift annuity is the right fit for you.
Interested and want to learn more?
Please visit our Planned Giving pages to learn more about leaving a legacy gift, and please contact me with questions – I’m here to help!
Rachel Chesser
Planned Giving Officer