As the year winds to a close, our thoughts turn to the holidays--and to tax planning. There are a variety of ways for you to prepare for the end of the year through charitable giving.
Appreciated Stock Donations. "It's a rare opportunity when taxpayers get to 'double-dip' within the tax code" according to
Ron Austin, CPA, managing partner of MMA & Co. "But with appreciated stock donations, they get to do just that."
Giving appreciated stock to the charity of your choice gives you the advantage of taking a charitable deduction
and avoiding any capital gains tax that you would have to pay if you sold the stock and donated the cash. However, this requires that 1) you itemize deductions and 2) you bought the stock more than a year ago. If you've held the stock for less than a year, deductions are limited to your cost basis (what you paid for the stock) versus its current value.
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Invest in Kids Tax Credit. Illinois taxpayers have an option to participate in the "
Invest in Kids" program, receiving a state income tax credit in the amount of 75 percent of qualified contributions to Scholarship Granting Organizations (SGOs). Taxpayers first are required to apply online to the Illinois Department of Revenue (visit their free online tax portal at
MyTax Illinois). The SGOs provide scholarships for students to attend qualified, non-public schools in Illinois. As an example, a donation of $10,000 will save you $7,500 in taxes, so the contribution only costs you $2,500.
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Required Minimum Distributions. People who are 70 1/2 must take Required Minimum Distributions (RMD) from their IRAs or face tax penalties. Using the RMD to make donations can help lower your tax bill while also helping the charity you support as long as it's a qualified 501(c)3 organization. The charity must receive your donation by Dec. 31 in order for it to apply to that year's tax return. Distributions must be made directly from the IRA to the charity or they will be counted as taxable distributions. This is especially valuable for taxpayers who don't itemize their deductions.
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These are just some highlights of how charitable giving can help reduce your tax bill in the current year. Each option has its own complexities and requirements. For more information about any of these programs and how we can help with your tax planning, please contact us. We are ready to help you design a plan for giving that meets your needs.
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Our People Make a Difference
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Zaid Siddiqui, staff accountant, represented Mathieson, Moyski, Austin & Co. on October 8 at a
Glen Ellyn Chamber of Commerce member luncheon. Along with other members of the
Glen Ellyn Business Leaders' Forum, Zaid was invited to contribute an overview from his industry's perspective. He shared highlights of tax changes business owners can expect going into the last quarter of the year and into 2020.
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Zaid takes the mic to offer Glen Ellyn Chamber members insights into tax issues that may affect their businesses.
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Zaid is joined by other members of the Business Leaders' Forum:(L to R)
Rob Kelley
of
Country Financial
, Zaid,
John Hughes
of
Glen Ellyn Bank & Trust
,
Sue Martin
of
TMC2
and
Paul Sivak
of
Precision Payroll of America.
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Our talent search led us to
Benedictine University in Lisle this month for their annual
Fall Internship and Career Fair, held October 18 at the campus' beautiful Goodwin Hall. Here
Jake Rexilius, staff accountant, and
Iqra Majid, intern and a senior at Benedictine as well as president of the university's Accounting Club, talk with potential recruits. The fair is hosted by the Academic and Career Enrichment Center and this year was the first time the fair was held in the business building.
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October was a time for giving, from the
Lions Club Food Drive here in our office to our team service project Oct. 24 at the
Northern Illinois Food Bank
in Geneva. This was the third year that the MMA & Co. crew took a half-day to contribute toward helping feed the hungry. Our contribution this year was labeling cans of vegetables that had been donated by generous food suppliers throughout the area. Some team members cleaned or labeled cans while others packed them up or kept a tally of the boxes filled. In total, we packed
6,031 pounds of food, providing
5,026 meals for hungry neighbors in Northern Illinois.
The Northern Illinois Food Bank's vision is "For no one in Northern Illinois to go hungry." This not-for-profit is a member of the
Feeding America Network, meeting the needs of families across the nation. The Food Bank provides food for more than half a million people every year through this network of 900 partner feeding programs.
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Please save
Thursday, December 5, for our
Holiday Open House and Retirement Party for
Mike Moyski, CPA. This is our first opportunity to host a party in our new offices on the fourth floor at 211 S. Wheaton Avenue (Suite 400). We will also celebrate the many contributions of co-founding partner Mike Moyski as he prepares for new adventures post-retirement.
More details to follow!
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We so appreciate the work done by our clients, colleagues and friends who run, support and volunteer at organizations like the Northern Illinois Food Bank. As we move into the holidays, it's a great time to say "thank you" to those of you who invite us to support you and your financial goals. Please let us know how we can help you plan for the end of the year--and the years to come.
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Ron Austin, CPA
Brian Eisenmenger, CPA
Brian Hagene, CPA
Brett Mathieson, CPA
Mike Moyski, CPA
John Straus, CPA
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