24 August 2018
Benefits of Charitable Giving
Charity is a wonderful act. Giving to charity has many advantages. When people give to charity, they are directly giving to a cause they care about personally. The giver can influence the direction of society both at home and abroad. A giver may choose to donate money to a local literacy campaign, send funds overseas to provide people with access to medical care or help a worthy politician gain public office. In addition, giving to charity also offers certain financial benefits. In the United States, people who donate money to charity can help use their donations to reduce their overall taxes. The savings may be significant over time. This is why it is beneficial to know which tax laws may apply to optimize the financial aspects of the gift.
Making Decisions
Lawyers like a Waterbury tax attorney can help. A Connecticut tax attorney can point out what additional benefits can be attained from any form of charitable giving. For example, giving a certain percentage of one’s income over time rather than all at once may lead to even more tax benefits. When giving to charity, it’s wise to have an overall plan in mind before doing anything else. The giver may want to designate a certain percentage of funds for each cause. They may also want to set aside a lump sum that can be used to generate interest and provide even more funds over time. Additionally, charitable trusts and gifts are also a useful part of a well-organized estate plan.
Speaking to a LawyerÂ
The Supreme Court of the United States has said that no American has an obligation to pay more taxes than is legally required. To optimize the tax benefits of your charitable giving it’s best to speak to attorney right away. Each day the tax system of the United States is becoming more complicated and confusing. It’s not always clear what to do to avoid a conflict with the IRS or DRS. A Connecticut tax attorney can suggest innovative and thoughtful solutions you haven’t thought about before. For example, they can help you figure out ways to work closely with the Internal Revenue Service with specifics such as starting a charity or donating to an existing charity. Creative, insightful suggestions and an understanding of the law are the best ways to solve any existing problems and head off any possible additional problems going forward.