Taxwise giving
Now is when many folks pay extra attention to charitable giving and the deductions that go with it. How can you make the most of what you give away?
Donating appreciated assets is especially effective: you get to deduct the full amount of the gift and, at the same time, escape the tax bite on the appreciation. Or, for those over 70 1/2, donate directly from your IRA. You can't deduct the gift, but there are no taxes on the distribution from the IRA.
Charitable remainder annuity trusts pay an annuity to the donor for a set time; then the charity gets to keep the remainder, with an upfront deduction for that remainder. That works best when interest rates are going up. If they stay low, consider a charitable lead annuity; the charity gets the annuity for a set term and a designated beneficiary gets the remainder. The donor gets a deduction for the charity's interest.
For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.
He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.
An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.
