About this episode
Your generosity can pay off in more ways than one: when you give a charitable gift, the IRS will forgive a tax. In episode 48 of the YMYW podcast, Joe Anderson, CFP® and Big Al Clopine, CPA share how to make tax-smart charitable donations. Original publish date July 16, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed. 00:00 – Intro 02:47 – "Here's what does create a tax deduction for volunteering: your mileage to and from some type of charitable event you go to…supplies you purchase directly for charity, and there are some fundraising expenses that will qualify for tax deductions. A lot of people miss those deductions. Those deductions reduce your taxable income which ultimately reduces the amount of taxes you pay." 04:36 – "If you're spending money for charitable purposes or for a specific charity, then those expenses may be tax-deductible." 07:00 – "Give appreciated stock directly to charity because the tax deduction you get is the current value of the stock on the day you donated, and you don't have to pay tax on the gain." 12:04 – "If you can get a little more sophisticated in your tax planning and combine a couple of these different strategies together, you can save money in tax and actually create more income." 14:00 – "It's called a donor-advised fund. You can actually set up a fund at a brokerage firm, it's a special account where you control the investments and then you decide which charities get what amounts…here's the key: the key is that the year you set up the account and put the money in the account – that's the year you get the tax deduction." 20:02 – "You can take money out of your IRA and give it directly to charity." 25:42 – "There's no harm in getting a tax benefit. The IRS encourages it; you just have to know what's available and what to do." 29:44 – "Once you get a better picture on how all of this looks, you'll make better decisions." 35:07 – "You have more control over taxes now than any other time in your life."