In the past, we have suggested giving a tax-deductible gift to support the collections and educational programs that make the Rancho such an extraordinary place. The new Tax Relief Act signed into law December 17, 2010 offers another method for qualifying individuals to provide for the Rancho.
The Act allows taxpayers over the age of 70½ to direct their required minimum distribution from an IRA to a qualified charity and exempt the distribution (up to $100,000) from taxable income. It is effective for distributions made in 2010 and 2011.
By making a distribution from an IRA directly to qualified charities without having to include it in income, your taxable income will be lower. The taxable portion of your social security benefit might be lower as well. Additionally, this benefits non-itemizers where no charitable deduction is available.
Please consult your tax advisor for more information about how this may work in your case.
