Law Offices of Connie Yi, PC - estate planning
Tell Us About Your Case

For the safety of our community, clients and staff, we have suspended all in-person meeting effective March 17, 2020. All consultation meetings will be via Phone or Zoom Video Conferencing. Please contact us at 925-484-0888 or email us directly at [email protected] to schedule the consultation.

Bay Area Estate And Tax Planning Law Firm
Estate Planning
Trust Administration and probate

How gifting can help you save on taxes

| Feb 1, 2013 | Uncategorized |

Everyone wants to lower the amount of taxes they are required to pay in a year and get that maximum refund in the spring. With filing season upon us, you may be thinking of ways to get the most bang for your buck this year – while avoiding the dreaded IRS audit.

Charitable giving is a great way to save money on taxes. In addition to doing something great for the needy in your community, you get to feel even better about your contribution when tax time rolls around. And you don’t need to give so much that you put yourself in debt. Focusing on how you give to charity can save you big.

Like anything you claim on your taxes, charitable donations must be well-documented. Many charitable organizations will provide you with a receipt at the end of the business year. Hold on to it. To be safe, it is also wise to pay by check and make a note in the memo line, as check stubs qualify as written documentation.

If you are able it is wise to save up your charitable giving and make several years’ worth of donations at once. This maximizes your deduction and may pay off more than making several smaller donations over the course of many years.

If you are considering making a significant change to how you handle your taxes, there may be consequences that you cannot foresee. It is always wise to consult with someone who knows the law, such as a financial advisor or qualified tax attorney. He or she can advise you of relevant tax law and help you plot the best course of action.

Source: Law & Daily Life, “Best Ways to Use Charity to Lower Your Taxes,” Deanne Katz, Dec. 21, 2013

Archives

FindLaw Network

Recent Blog Post

Is estate planning necessary for young people?

Misconceptions exist about the relationship between age and estate planning. Yes, older people may prioritize estate planning for reasons related to advancing age and health concerns. That does not mean only older California residents benefit from the process. Young...

What are the responsibilities of a fiduciary?

Residents of California may want to learn more about the role of the fiduciary and their responsibilities. Because fiduciary duty may be a requirement among certain professions, clients and professionals should know more about what this is. The meaning of fiduciary...

5 factors to consider when choosing a guardian

For parents, one of the biggest reasons they decide to create an estate plan is to ensure their child will be cared for no matter what. It isn’t easy to think about a tragedy where a child may lose both their parents before they turn 18, but parents have to plan for...

View More Blog Posts