Minimize Taxes Through Gifting
Giving assets to family members is a popular tax-minimization strategy to consider. Before you do so, be aware of the current gift tax exclusions. At Orsbon & Fenninger, LLP, in Charlotte, we can help you plan your gifting strategy, so you avoid a high federal gift tax of up to 40%.
Utilize Gift Tax Exclusions
Using gifting as part of your tax reduction strategy makes sense when you know the numbers. The amount that you can gift without being taxed for it is adjusted for inflation each year. In 2021, each individual can give 15,000 dollars to each recipient tax-free, up to a lifetime limit of 11.7 million dollars.
The Power Of Gifts To Charities
You can support causes you are passionate about and reduce your tax bill at the same time. Gifts to charities can provide tax exemptions, and if structured in a charitable remainder trust, will avoid capital gains while generating income during your lifetime. Our firm can show you the donation options that make the most sense for you.
Those taking the standard deduction on their taxes can get a tax advantage by gifting your required traditional IRA withdrawals to a charity. The qualified charitable distribution provision can give you an additional tax deduction of up to 100,000 dollars a year.
Find Out More Today
To successfully minimize your tax exposure, it is critical that you know the current regulations before gifting. Obtain legal counsel before gifting, so you do not end up increasing your taxes. With our over 50 years of combined experience, you can trust Orsbon & Fenninger, LLP to provide sound advice. Give us a call at 888-314-8134 or contact us online to arrange for an initial consultation.