MAXIMIZE YOUR GIFTS IMPACT & TAX BENEFITS IN 2020
The CARES Act includes a $300 universal charitable deduction for those who will take the standard deduction for the 2020 tax year.
If you itemize deductions on your tax return, you could consider using cash to make a gift before December 31 to impact the lives of Wabash students. The CARES Act allows you to deduct gifts of cash up to 100% of your adjusted gross income for the 2020 calendar year.
If you are age 70 1/2 or older, you could also consider making a qualified charitable distrubution (QCD) from your IRA. There were two new tax laws that took effect in 2020 that could change the way you decide to give through a QCD. The SECURE Act changed the minimum age requried to take a minimum distribution (RMD) to the age of 72 and the CARES Act waived the RMD for everyone in 2020.
You should consult your tax adviser about these changes and the impact of your giving strategy as these changes do not affect your ability to make a tax-advantaged QCD if you are older than 70 1/2.
If you have experienced gains in the financial markets this year, you can gift appreciated securities to Wabash to avoid paying capital gains taxes this year.