3 Steps to End-of-the-Year Tax Savings

The following three steps will guide you to take advantage of tax-saving strategies as you set your charitable and financial goals.

1. First Things First
Make a list of the causes you would like to support. Then, if you haven't already, get an idea of tax liability by calculating your income. For example, you may have sold assets this calendar year or, for other reasons, have a larger-than-normal tax bill. In this case, move forward some of your anticipated giving for next year to this year to create a larger deduction this year.

2. Get a Charitable Income Tax Deduction
Cash, real estate, personal property and stocks are among the most popular charitable gifts. Depending on the gift type you choose, you are generally eligible for a charitable income tax deduction that can be as high as 30 to 50 percent of your adjusted gross income.

3. Watch the Calendar
All gifts must be completed by Dec. 31 to qualify for an income tax deduction this year.

• Cash contributions sent by mail are deductible if they are mailed by midnight on Dec. 31.
• Gifts of securities are generally deductible on the date they are transferred to our organization's books—not the date you ask your broker to make the transfer.
• In most states, real estate gifts are considered completed on the date a properly executed deed is delivered to Gustavus.

To play it safe, contact a tax advisor to discuss your giving options and strategies. You may also contact Laurie L. Dietrich '80 at 507-933-6043 or ldietric@gustavus.edu at any time.