Part I of III
Just in time for
tax season, CONTACT! Magazine supporter Percy Lorie offers a little
food for thought.
CONTACT! MAGAZINE
and its parent 501(c)(3) Charity, Aeronautics Aviation Enterprises
like all Educational Charities needs and welcomes your support and
contributions.
Knowing you have
other organizations including Religious, Educational, Social
Service, Hospitals, Service Organizations and a multitude of worthy
recipients, a series of articles will be added along with links to
informative sites, in the future, to help donors interested
Experimental Aviation control and maximize for personal benefit and
Charitable benefit their giving.
Let us first look
into the problems and various personal goals of the average USA
giver. Sorry, for those of you not subject to ”Uncle Sam’s” rules
you may gain ideas however the tax advantages will not apply.
Where did you
first learn charitable giving? For most of us it was thru religious
training where as small children we took our 10 cents per week or
more and placed it in a box or plate to help those less fortunate
then ourselves. Perhaps you learned it at school with UNICEF or
donations to other causes. Some learned by watching their parents or
others in the community help out when called upon. Don’t forget the
influence of television Ministries, Jerry’s kids or seeing the “Bell
Ringers” in front of stores during the Holiday Season. For some that
are a little older the contribution to support of the war effort by
the purchase of Savings Bonds or in school Savings Stamps to support
the World War II effort in behalf of the Allied Forces. Most
remember their history of sales to the German people of a
coupon/stamp book promising them a free VW Beetle from Hitler’s Nazi
Government.
NO of course we
do not agree with the goals or operation of every Charity,
Government or Organization but there among the crowded list seeking
your help worthy recipients that each of us wishes to help. In
addition most within society wish to be absolutely sure the funds
donated are in fact used for the stated or intended purpose and not
diverted as we are reading about to subversive organizations or
unreasonable operating overhead expenses.
Almost all give
some or a lot to various Charitable or others needing our help and
wish to promote and assist with their cause or efforts. Most of us
wish to help and teach our children the responsibility and pleasures
derived by generosity. Social Engineering is a part of most
government laws and tax codes.
Ideas presented
are not in detail nor suitable for every readers needs or desires
but with careful reading you may find in this series of articles
something that is of use to you. |
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appreciated assets then the
maximum that may be applied in one taxable year is 30%. There is a
provision that permits you in both cases to “carry forward” the
un-used portion of the donation to future years for a period of (5)
five years.
Assets could be
cash, stock, bonds, deeds on Real or Personal Property or anything
of value. “Fair Market Value” must be established. Cash of course
presents no problem but other forms of gifts need a little caution
when giving.
Stock or Bonds
should not be sold by you when donating but transferred directly to
the Charity for them to sell if you have a gain over “Adjusted Cost
Basis”. In a loss just sell but if you have a profit transfer direct
to the Charity as a “IN KIND” transfer. The instruction to your
broker should read “DO NOT SELL BUT TRANSFER IN KIND”. Were you to
sell at a profit and then donate then you would own tax on your gain
at ordinary or long term capitol gains rates depending on length of
time you held the securities. The value of “Common Stock” donated is
its value as of “close of business” on the day donated. If you wish
to donate securities and the Charity does not have an account, as is
often the case, simply arrange for your broker to open one for them.
This makes transfer “IN KIND” very simple. It could take a little
time so don’t put off until the very end of the year.
Gifts of Real or
Personal Property should be substantiated by a qualified appraiser
if the gift is “substantial” or is Real Property be sure you take
this extra precaution.. If total Personal Property donated exceeds
$500. for one year be sure a receipt is obtained and it should be
itemized again at the “Fair Market Value”.
Donations for things
of value are not deductible. A good example of this would be a fund
raising dinner. If however the amount charged for this dinner
exceeds it value than that portion that exceeds the “Fair Market
Value” of the dinner is deductible and the Charity will advise you
of the amount of the deduction.
Hopefully this
information will help as you file your 2004 taxes and in planning
your giving and tax planning for this New Year. In the next issue
tax ideas how giving affects your estate plan will be continued with
a series of in depth information and details.
Future donors who
give Aeronautics Education Enterprises will be acknowledged with
their permission in this column of your publication.
CONTACT! MAGAZINE AND AEE OFFERS THIS REFERENCE
MATERIAL ONLY AS A SUGGESTION THAT IDEAS PRESENTED BE DISCUSED WITH
YOUR ATTORNEY, CPA, ACCOUNTANT AND/OR FINANCIAL ADVISOR.
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