Several studies have shown that helping others increases happiness more than helping oneself. These gift suggestions for the end of the year are meant to help you spread cheer now rather than waiting until December. There is no time limit on being kind to others.

If you have any questions about managing your equity holdings and wealth management, don’t hesitate to contact GLP Financial Group.

Make a monetary contribution or a product donation.

Whom you contribute to and how much you give is entirely up to you. You might get a break on your taxes as well. You can deduct 60% of your AGI in cash donations in 2022, according to the CARES Act, if you itemize your taxes. The CARES Act is helpful even if you don’t itemize your taxes since it provides an above-the-line deduction of up to $600 for charitable cash contributions (married filing jointly). Remember that this deduction does not apply to contributions made to DAFs or private foundations.

Tax-deductible donations

The beneficiaries of a traditional IRA may designate their required minimum distributions to charity organizations that meet specific criteria. This sum is not included in taxable income and may reduce tax liability. Giving to charity allows you to lower your taxable income while doing good for others.

Donate appreciated assets such as stock

You may deduct the stock’s fair market value (FMV) from your taxes immediately, and you won’t have to pay any capital gains tax on the rise in value. Estate taxes may also be lowered through gifts. It is possible to deduct up to 30% of your adjusted gross income for gifts of securities.

The Use of Insurance

Leaving the business to a loved one or a nonprofit is one possibility. Although the payment will be subject to gift tax when transferred, it will be exempt from estate tax when disbursed.

You can also save on taxes by making a bequest to charity and using the proceeds to pay for a life insurance policy that will benefit your loved ones after you’re gone.

Donor-controlled charity accounts (DAFs)

Establish a de facto family foundation with zero legal fees and minimal administrative and tax reporting hassle. You may start deducting your donations and recommending disbursements to your favorite organizations whenever you’re ready. This money may be invested and will grow tax-free.

Exceptional 529 plan clause

One can give up to five years’ worth of contributions at once per beneficiary* through “accelerated giving,” a more substantial, up-front commitment. A single donor is limited to a maximum of $16,000 per recipient, but a married couple may donate up to $32,000.