36 THE QUEENS COURIER • SEPTEMBER 27, 2018 FOR BREAKING NEWS VISIT WWW.QNS.COM
Gift Giving Plans
BY JOHN SAVIGNANO, CPA
Start thinking about your gift giving
plans. There are things you can do to
reduce your tax bill when giving to family
members or donating to charity.
Note, the lifetime estate and gift tax exemption.
Congress nearly doubled the break in
the new tax law. For 2018 deaths, the figure
is $11,180,000…$22,360,000 for couples
if portability is timely elected on Form 706
after the death of the first-to-die spouse. This
higher amount is set to expire after 2025.
Don’t waste the annual gift tax exclusion.
You can give up to $15,000 each
to a child, grandchild or any other person
in 2018 without having to pay gift
tax or tap your lifetime estate and gift
tax exemption. Your spouse can also
give $15,000 to the same done, making
the tax-free gift $30,000. For example,
if you are married with four children
and seven young grandchildren, you can
give up to $30,000 in 2018 to each of
your kin without gift tax consequences.
That’s $450,000 in tax-free gifts, assuming
that you include your kids’ spouses.
Making yearly gifts greater than the
$15,000 exclusion amount…$30,000 if
married…will trigger the requirement
to file a gift tax return for the year. But
no tax will be due unless you’ve already
made more than $11,180,000 in gifts
during your lifetime.
Make the most of your generosity when
donating to charitable organizations.
Contribute appreciated assets, such as
stocks or shares in mutual funds. Provided
you’ve owned the property for more than a
year, you can deduct its full value in most
cases. And neither you nor the charity has
to pay tax on the appreciation.
Don’t donate property that has declined
in value since you acquired it. The charity
won’t get to deduct the built-in loss when
it disposes of the asset. Take advantage
of a charitable tax break for IRA owners
age 70 ½ or older. You can transfer up to
$100,000 per year from your traditional
IRA directly to charity. Such charitable
transfers count as part of your required
minimum distribution. But unlike other
payouts, these direct gifts are not included
in your taxable income. The IRA-tocharity
strategy can be a good way to get
tax savings from charitable gifts for taxpayers
not taking charitable write-offs
because of higher standard deductions.
Here are two ways to help your kids
or grandkids with their education.
Contributing to a 529 plan is a great
option. You can shelter from gift tax as
much as $75,000 in a single year per beneficiary
($150,000 if your spouse joins in).
If you contribute the maximum, you’ll be
treated as gifting $15,000 (or $30,000) to
that beneficiary in 2018 and in each of
the next four years…2019 through 2022.
Payins are excluded from your estate as
long as you live through the fifth year. Note
that 529s are no longer just for college.
Tax-free distributions of up to $10,000 can
now be taken each year to help pay for private
or parochial K-12 tuition. The $10,000
annual cap doesn’t apply to 529 plan withdrawals
to pay for college.
Paying a person’s tuition directly to the
school is tax-favored, too. The payment
is not treated as a gift for purposes of the
gift and estate tax rules.
John Savignano is a partner with
Savignano Accountants & Advisors located
at 47-46 Vernon Blvd., Second Floor, in
Long Island City. If you have any questions
or require additional information, please
call John at 718-707-0955.
September is Life Insurance Awareness
Month (LIAM), a great opportunity to get
educated on the importance of life insurance.
It can seem daunting to get all your financial
ducks in a row. But the beauty of any
journey: It doesn’t happen all at once. Step by
step. Goal by goal. Do that next good thing
by putting financial protection in place with
life insurance. Then, no matter what happens
in your financial—or life— journey, your
loved ones will be OK financially.
Take that first step on your financial
fitness journey today by contacting
Adalberto Garcia for your free consultation
at: (407) 749-9526 or Advisors@
Taxes in Retirement
Retirement planning has three main
1. How much income will you probably
NEED to maintain the lifestyle you want?
2. Then you estimate how much money
you probably will HAVE from all sources.
3. That leaves you with an amount you
need to SAVE personally to make up for
When analyzing how much you should
SAVE to make up for any shortfall, TAXES
often play a significant role in decision
making. To learn and see how taxes will
play a role in your retirement, contact our
advisor, Adalberto Garcia for a free consultation
at: (407) 749-9526 or Advisors@
Attorney At Law
25-59 Steinway Street
Astoria, NY 11103
BEST PERSONAL INJURY
Call Now & End Your Tax Nightmare!
Co-Author of the
best selling book
“Breaking the Tax Code”
Salvatore P. Candela, EA, ATA, ABA
Enrolled Agent - Tax Advisor