Timing is important. Whether it is keeping time while dancing the Cha-Cha or a quarterback connecting with his favorite wide receiver, timing matters. So it is with making sure you get credit for your charitable giving.
You do want to take that deduction with your 2014 tax return, yes?
For tax purposes, a charitable gift is deemed made on the day the gift was delivered to the charity. Accordingly, you need to know when your gifts will be considered delivered.
Recently, the Wills, Trusts & Estates Prof Blog published a list of delivery dates for common types of gifts in an article titled "Date of Delivery for Gifts."
For your present and future reference, here are the key “dates of delivery” for commonly gifted assets:
- Securities – The day when hand-delivered or mailed via the U.S. Postal Service.
- Mutual Fund Shares - The day when the fund manager transfers the shares to the charity.
- Checks - The day they are sent in the mail, as long as they are not post-dated.
- Personal Property - The day the property and title are received.
- Real Estate - The day the deed is received or when it is registered, if required by local law.
- Credit Cards - The day a bank transfers the money to the charity.
By the way, donating cars, furniture, clothing, or household goods can really make an impact and typically get you a tax benefit, too. Clear out some things you no longer use and donate them to your favorite charity. Remember: When donating such tangibles, be sure to get a receipt from each charity you help.
To ensure your generosity complies with the tax law and, therefore, falls within tax year 2014, contact an experienced estate attorney sooner rather than later.
Reference: Wills, Trusts & Estates Prof Blog (November 27, 2014) "Date of Delivery for Gifts."
Charitable giving will make you feel good, too. Talk to your estate planning attorney for other ideas and strategies.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.
Reference: Reno Gazette-Journal (November 28, 2014) "Animal Files: End-of-year giving can be worthwhile"