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Frank Nico; CBN Director of Planned Giving

This CBN Director of Planned Giving will share end-of-year giving tips. Read Transcript


PAT: 2013 IS COMING TO A

CLOSE AND SO IS THE DEADLINE FOR

MAKING CHARITABLE KRIPGSS.

THE MORE YOU GIVE, MORE YOU CAN

DEDUCT AND MORE MONEY YOU CAN

GET BACK FROM THE IRS.

JOINING US TO EXPLAIN IS FRANK

NICO.

GOOD TO SEE YOU AGAIN.

GOOD MORNING.

PAT: WHAT ARE YOU TELLING

PEOPLE AT THIS POINT?

WHAT IS THE KEY THING THEY

SHOULD REMEMBER?

LET'S ASSUME THEY BOUGHT STOCK

AND STOCK WENT UP.

LAST YEAR WHEN WE TALKED

ABOUT IN DECEMBER, WE WERE

FACED, THE ECONOMY WAS FACING

FISCAL CLIFF.

THE PRESIDENT AND CONGRESS, THEY

AGREED TO PASS THE AMERICAN TAX

PAYOR RELIEF ACT.

IT IS NOT A RELIEF FOR A LOT OF

THE HIGH INCOME EARNERS.

FOUR TAXES THAT TOOK PLACE,

INCREASE IN ORDINARY, 35% TO

39.6.

DIVIDENDS AND CAPITAL GAINS

INCREASE 15-20%.

THEN THE PHASE OUT OF THE

PERSONAL EXEMPTION AND ALSO

REINSTITUTED THE P'S LIMITATION

OR PROVISION WHICH LIMITS

ITEMIZED DEDUCTIONS AND

AFFORDABLE HEALTH CARE ACT

IMPOSED A 3.6% SURTAX ON NET

INVESTMENT INCOME.

THERE ARE CHARITABLE STRATEGIES

TO COUNTER ACT, NOT ONLY FOR

HIGH INCOME EARNERS BUT TAX

PAYORS AND TALL TAX BRACKETS.

PAT: TELL US.

ONE IS GIVING APPRECIATED

STOCK, DOUBLE TAX BENEFIT, YOU

CAN GIVE AND GET A CHARITABLE

DEDUCTION FOR THE MARKET VALUE

AND BYPASS THE CAPITAL GAINS TAX

ON THE APPRECIATION.

I HAVE AN EXAMPLE.

PAT: GO AHEAD.

STOCK MARKETS THIS LAST YEAR

GONE UP 20% SINCE 2009, A LARGE

INCREASE.

IF A FEW YEARS AGO YOU BOUGHT A

STOCK $5,000 AND NOW APPRECIATED

AT 10,000, THAT GENERATES

CHARITABLE TAX DEDUCTION OF

10,000 AND FEDERAL TAX SAVINGS,

3,960 IN THE TOP TAX BRACKET AND

BYPASS CAPITAL GAINS TAX WHICH

IS 20%.

FOR A GIFT OF

10,000,

YOU ARE

TALKING $5,000 TAX SAVINGS RIGHT

THERE.

PAT: YOU

ACTUALLY

ALMOST GET

YOUR MONEY

BACK.

IT IS A GREAT STRATEGY.

PAT: I AM A GREAT

FAN OF

CHARITABLE REMAINDER UNI TRUST.

YOU CAN CREATE LIFETIME

INCOME OR INCOME FOR A TERM OF

YEARS, IDEAL FOR APPRECIATED

ASSETS WHEN YOU HAVE A BUSINESS

YOU ARE SELLING OR REAL ESTATE

OR RENTAL PROPERTY.

SET THE TRUST UP BEFORE YOU HAVE

A LEAGUE BINDING CONTRACT.

MOVE THE ASSET INTO THE

CHARITABLE TRUST.

YOU

G

ET

CHARITABLE

DEDUCTION

AND

BYPASS CAPITAL GAINS TAX.

PAT: IF YOU HAVE PROPERTY NOT

YIELDING MUCH, FOR EXAMPLE, YOU

CAN PUT IT INTO A CHARITABLE

REMAINDER UNITRUST AND PAY THAT

MONEY TO YOURSELF, RIGHT?

YOU CAN SET IT UP AS A

PERCENTAGE THAT YOU TAKE OUT

EVERY YEAR.

THEN THE REMAINDER AFTER ONE

LIFE OR TWO

LIFE,

GOES TO THE

CHARITY YOU

PICK.

DEDUCTIBLE

INSIDE THE

UNITRUST, THE MONEY THAT COMES

OUT YOU HAVE TO PAY TAXES, YOU

CAN

DOUBLE

OR

TRIPLE OR

QUADRUPLE.

YOU GET THE DEDUCTION AT THAT

TIME.

PAT: SOMETHING ELSE IF YOU

HAVE AN IRA, THE LAW IS VERY

TOUGH IF YOU GET PASSED 70 YEARS

OLD, YOU HAVE TO START MAKING

DISTRIBUTION FROM THAT IRA OR

HIT WITH A BIG PENALTY, HOW DO

THEY AVOID THAT PENALTY?

IN FACT, PAT, THE PENALTY IS

ONE OF THE MOST SIGNIFICANT OF

ALL IRS PENALTIES, IT IS 50% IF

YOU DON'T WITHDRAWAL THAT.

ONE THAT WAS REAUTHORIZED BY

CONGRESS AT THE BEGINNING OF

2013 IS CHARITABLE IRA ROLL

OVER.

BENEFIT IS YOU CAN THEN TAKE

THAT DISTRIBUTION AND TAX FREE.

THE KEY IS THAT, THAT PAYMENT

HAS TO BE MADE IRA DIRECTLY TO

LIKE CBN.

WE HAVE A NUMBER OF DONORS.

PAT: GUY HAS AN IRA.

HE CAN TAKE AS MUCH AS $100,000,

PAY IT FROM THE IRA TO THE

CHARITY AND DOESN'T HAVE ANY

PENALTY, HE QUALIFIES FOR THE

DISTRIBUTION HE IS SUPPOSED TO

MAKE AND AVOIDS ALL THE

PENALTIES AND PASS THE MONEY OUT

TO THE CHARITY WITH NO STRING?

IT IS EXCLUSION FROM INCOME

NOT DEDUCTION.

IT IS ADDED BENEFIT, SINCE IT IS

REDUCING THE MEDICARE PREMIUMS

OR THE TAX ON SOCIAL SECURITY

BENEFITS, ALL THOSE COME INTO

PLAY.

PAT: IF SOMEBODY WANTS TO DO,

WHAT ARE THEY GOING TO DO NEXT?

800-333-2373.

IT IS VERY IMPORTANT TO CULT

CONSULT THEIR TAX ADVISER.

PAT: 333-2373.

GOT THAT?

FRANK NICO WOULD LOVE TO TALK TO

YOU.

THIS IS A WONDERFUL WAY OF

HELPING THE LORD'S WORK AND

SAVING TAXES AND A PENALTY.

EMBED THIS VIDEO

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