March 9, 2007, Newsletter Issue #53: Smart Giving: Time Your Gift to Best Tax Advantage

Tip of the Week

For many people, income can vary from year to year. Tax rates fall and rise in step with income fluctuations. Luckily, income tax savings from donations rise and fall as well. For example, imagine that you know your income will be substantially greater in 2006 than it is in 2005. If your tax rate is 28% in 2005, you expect a tax rate of 39.6% in 2006, your relative tax deduction on a $10,000 would be $2,800 for a gift made on or before December 31, 2005 and $3,960 for a gift made on or after January 1, 2006.

*If you are in the fortunate position to be making large donations and your income varies from year to year, plan to make large donations during the higher income years.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Charity Tip Site? Request a Tip Now!


Guru Spotlight
Phyllis Serbes