How Generosity Can Save You Money
Ernie Neve, CPA
November 27, 2019
It pays to be generous. No really! And we’re not just talking about moral gains—the benefit is financial as well. Your charitable contributions can actually result in some serious tax breaks. And more contributions count as charitable than you might think! According to the IRS, there are eight different types of organizations that qualify. Some are more obvious, like non-profits and religious organizations. But there are a few that you might not be aware of.
If you’d rather control what the government does with your money, you can opt to donate money to them in exchange for a tax discount.
Provided that they use the money for charitable services, your contribution to your son or daughter’s fraternity or sorority may count as a tax-deductible contribution.
Has someone close to you been served? One way you can give back to our soldiers is by donating to war veterans’ organizations. And tax-wise, it benefits you, too.
It pays to give! Some financial gifts—a category separate from charitable contributions—make you eligible for tax breaks. This doesn’t count gifts to your spouse, nor does it include gifts to charitable organizations, but it does include many personal gifts over the year’s annual exclusion limit. U.S. News & World Report suggests using a technique called “gift splitting” to give money to your children. This gift has two impacts, as initially, it benefits your children; later in tax breaks, it benefits you and your spouse. As those of you with older children know, you’ll likely end up giving them money for college and other resources anyway, so you might as well get a tax break for it!
Looking for more ways to save on your taxes? Ernie Neve and The Neve Group can help. Simply contact us at 610-278-8900 or visit www.nevegroup.com today.