(1) Section “529” – College Educational Savings Account
Set one up for your children or grandchildren. The earnings on the investments are tax free and the amounts withdrawn by you or the beneficiaries are tax free to the extent the funds are used to pay for college expenses. The contributions are not deductible on the federal return but are on the NY return. You can contribute any amount but the deduction on your NY return is limited to $5,000. Your broker can set up an account or accounts for you.
(2) Donate The IRA Minimum Distribution To Charity
When you reach age 70 2, you are required to take a minimum distribution (fair value at December 31 divided by your life expectancy in IRS tables). from your IRA (N/A to a Roth). Instead of taking it in cash, donate the minimum distribution to charity. This way you do not have to pay taxes on the distribution, but since the distribution was given to charity and was tax free, you cannot take a charitable contribution for the amount donated. If you want to do that, contact your IRA administrator and give him or her the name and address of the charity you want to donate it to.
(3) Donation Of Appreciated Property
The advantage of donating, (rather than sell them and donating the cash) stocks, bonds, mutual funds or other property that has appreciated in value is you get a charitable contribution deduction with no cash outlay for the fair Read more