PAWS Magazine

Issue 39, Fall 1998

Including PAWS in your year-end giving plans can be advantageous

With the 1998 tax year rapidly coming to an end, giving to PAWS can prove advantageous.

Senior giving If you are over the age of 59½ and have retirement accounts, you may wish to make withdrawals on your accounts sufficient to cover your charitable gifts. You report the income on your return and take a corresponding deduction for your gifts. The result is a wash for tax purposes, but you have ensured that the funds will never be subject to income, gift, or estate taxes.

Reduce your taxes Charitable gifts by those who itemize at year-end can result in tax savings next spring. Your tax rate determines how much you save: the higher your tax rate, the more you save from each dollar given.

For example, if you give $100 and are in the 31% bracket, you save $31 in taxes. Certain limits on deductions apply. For example, you may deduct cash up to 50% of your adjusted gross income and most appreciated property up to 30%. Any excess may be used as a deduction over the next five years.

Give assets Provided that you have held them for at least one year, giving stocks and bonds to PAWS can generally allow you to bypass the capital gains tax that would be due if you sold the assets.

This information is general and should not be considered legal advice. You should contact your financial adviser for information about your specific situation. To make a donation to PAWS, please contact Robbin Peterson, PAWS Director of Development at (425) 787-2500 ext. 807.