The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/strategy-for-making-a-large-charitable-donation-11231635.aspx

Subject:  Strategy for Making a LARGE Charitable Donation Date:  9/7/1999  11:42 AM
Author:  CheetahChrome Number:  18687 of 121219

Ok, I know I really need to see an expert for this (& I will be doing so within the month). But, I thought I could get some possible strategies in advance.

Here's the facts in a nutshell:

1) Our income this year is ENORMOUS, since I left an Internet startup & exercised/sold most of my options.

2) I want to make a LARGE donation to a non-profit org that I am starting. I don't need to put all of the money in this year, but I'll need a good chunk this year & the rest next year.

3) Next year our taxable income will be pretty small, since I won't be working (no need to).

I seem to be stuck between a rock & a hard place, since if I make the donation this year, my income level seriously limits my tax benefits (i.e., my calculations show that I "get back" 25% of the donation, as opposed to 40%).

So, I could make a smaller donation this year & then put in the bulk next year. But, then I'd be hit with the 50% AGI limitation (remember, my income next year is small).

I know I am able to carry forward the extra donation amounts in this last case, for 5 years. But, I'm afraid that my income will continue to be small for the forseeable future, so I will probably still be bitten by the 50% AGI limitation.

Any ideas?

Cheetah

Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us