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LET'S JUST GIVE IT AWAY . . .

. . . and save some taxes in the process. Uncle Sam rewards most taxpayers with an income tax reduction when you make gifts to charity.
Consider the following charitable-giving techniques:
- Cash gifts - Generally deductible in thhe year the gift is given.
- Gifts of appreciated property (primarilly securities) held for at least a year - You get a deduction for the fair market value of the property given, regardless of what you paid for the property.
- Gifts made to a charity in trust can alllow for payments of income to the donor on an annual basis with the remainder going to charity at a future date.
- Deductible gifts into a private foundattion can be allocated to charities over several future years.

Some or all of these techniques can be used to reduce taxes while benefiting the charities you choose. These are (in some cases) very sophisticated planning tools. Consult your tax advisor to see if they apply to your situation.


LET'S JUST GIVE IT AWAY, PART 2

If the gifts you're interested in giving are to your family and heirs, there is a gift tax that puts restrictions on how much you can give away. What are those rules and how can you structure your giving to avoid the gift tax?
The gift tax is part of the U.S. estate tax structure. Upon death, an individual can leave an unlimited estate to a spouse, but only $650,000 to heirs other than a spouse. The estate tax is assessed on assets in an estate in excess of the $650,000. In order to keep assets from being given away before death in an attempt to avoid estate taxes, the gift tax provisions limit gifts that can be made during an individual's lifetime. In any calendar year, any individual can give $10,000 to any other individual without incurring a taxable gift designation. Gifts in excess of $10,000 per year reduce the donor's $650,000 estate tax exclusion at death.
To avoid this tax trap, plan your giving to stay under the $10,000 annual limitation. A mother and father can give away $10,000 each to each child, child's spouse, and grandchild. In this manner, estate taxes can be reduced in a rapid manner without making any taxable gifts.

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article of incorporation for pennsylvania