RetireMentors features retirement advice from financial professionals, not staff journalists. Joe Lucey, CFP, RFC, is a Certified Financial Planner and Registered Financial Consultant, and president of Minneapolis-based Secured Retirement Advisors a Registered Investment Advisor. With a year career devoted to retirees and those transitioning into retirement, he brings a wealth of insight and strategy to the specific objectives, concerns, risks and opportunities that charity segment of the population faces. Committed to upholding the highest standards in the industry, Joe is a member of the Ed Slott Master Elite IRA Advisor Group and the National Ethics Bureau. As the host of "Secured Retirement Radio," he can be heard on Twin Cities News Talk AM every Saturday at 7 a. Joe welcomes your questions or comments at jlucey securedretirements. Stuff their socks by gifting stocks. Before December 31st arrives, decisions about charitable giving need to be finalized to take advantage of year-end tax savings. Gifting of stock is also a great way to transfer a generous gift to family members that teaches the valuable lesson of investing. No matter gifting impetus, gifting your appreciated stock can be a great victory for both the recipient and the donor. Investors all share a general goal. They work hard and make decisions based on the best ways to make their money grow. Ultimately, the money they earn through investing is often spent on needs of family members, including children. If this scenario hits home with you, consider the practice of income shifting. Gifting shares of appreciable stock to your children this holiday season might alleviate some tax burden for you. Let me share with you a situation one of my clients found himself in. His daughter, Courtney, was entering her second year of college. Selling portions of stock to pay for his daughter's sophomore year of college exposed our client to substantial capital-gains taxes. From where my client sat, we advised him of his two options. However, in today's sandwich-generation society, it is becoming more common that children need to lend parents financial support. Often when this is the case, the children are in a higher tax bracket than the parent. Tax savings might be realized by gifting stock instead of providing a cash outlay to parents. If you are used to writing out a check to donate to your church, there is an advantage to gifting them an appreciated stock. Instead of paying capital-gains tax on whatever the stock has gained over the years, you can gift it to your charitable cause and avoid paying the capital-gains tax. Of course, this idea can be built upon. Investors might gifting creating a Options Charitable Distribution QCD or a donor-advised fund. The IRA Qualified Charitable Distribution provision can also help to bolster your legacy while reducing your taxable estate. Are you seeking a method to reduce your tax liability inor suggestions for reducing future realized capital gains in a highly appreciated investment? Consider opening a donor-advised fund. Created over 30 years ago, donor-advised funds are a popular form of family philanthropy. Donor-advised funds help taxpayers eliminate today's taxable gains and fulfill future philanthropic needs. These accounts are simple to open and inexpensive to operate. Recently we recommended a donor-advised fund for a shareholder of Medtronic stock who was able to eliminate some expected capital gains early next year. Medtronic announced an intended merger with an Irish health corporation named Covidien, which will likely create a corporate inversion in early January, Many other owners of Medtronic stock may also be facing huge tax liabilities. Gifting Medtronic stock this year will eliminate the probable capital-gains taxes, which will involuntarily occur inassuming the acquisition is completed. Gifting of appreciated property into a donor-advised fund is not limited to Medtronic shareholders, of course. Just about any options asset can be used to fund an account, including gifting, bonds, real estate or closely held business interests. Gifting stocks that have increased in value, to avoid incurring stock gains if sold, provides tax advantages. Gifting stock that has decreased in value, however, is foolish. Investors should sell stock that has decreased in value at a loss, so that they can claim a capital loss on their taxes. In the case of a distressed stock, cashing it out and making the charitable donation in cash will provide a much better tax advantage. By using this site you agree to the Terms of ServicePrivacy Policyand Cookie Policy. Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U. Intraday data delayed at least 15 minutes or per exchange requirements. Rolls-Royce holds to outlook, excluding FX effects. EU new car sales options with 7. BHP Billiton names Ken MacKenzie as new chairman. Greece reaches deal to unlock next bailout tranche. BP pushes ahead with offshore India gas plan. Updated Asian markets perk up as stronger dollar boosts exports. Oil set to add to streak of weekly losses. Nearly 1 in 3 Baby Boomers STILL have no clue what they want from their careers. Bank of Japan maintains its ultra-easy monetary policy. Updated Why smoking among teens has reached historic lows. Updated At summer camp, baby boomers relive their youth stock archery and show-and-tell. Updated There may be a parasite lurking in your swimming pool this summer, CDC warns. Home News Viewer Video SectorWatch Podcasts First Take Games Portfolio My MarketWatch. Retirement Retire Here, Not There Encore Taxes How-to Guides Social Security Estate Planning Events Columns Robert Powell's Retirement Portfolio Andrea Coombes's Working Retirement Tools Retirement Planner How long will my money last? Economy Federal Reserve Capitol Report Economic Report Columns Darrell Delamaide Rex Nutting Tools Economic Calendar. My MarketWatch Watchlist Alerts Games Log In. Until London Markets Open Asia Markets Currencies US Market Snapshot. Retire Mentors Stock by RetireMentors features retirement advice from financial professionals, not staff journalists. Home RetireMentors Tax Planning. Gifting to a child Investors all share a general charity. My client could cash in a portion of the stock needed for his daughter's college tuition this year, and pay capital -gains tax on the sale. My client could instead gift shares of this stock to his daughter Courtney, and help her sell them. However, Courtney may now be eligible for tax credits such as the lifetime learning credit which may offset some or all of the tax charity. Charitable gifting to an organization If you are used to writing out a check to donate to your church, there is an advantage to gifting them an appreciated stock. Using donor-advised funds Are you seeking a method to reduce your tax liability inor suggestions for reducing future realized capital gains in a highly appreciated investment? Never, ever gift stock held at a loss Gifting stocks that have increased in value, to avoid incurring capital gains if sold, provides tax advantages. Happy holidays and cheers! More from the RetireMentors: Is a reverse mortgage a good retirement strategy? We Want to Hear from You Join the conversation Comment. MarketWatch Site Index Topics Help Feedback Newsroom Roster Media Archive Premium Products Mobile. 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Somebody neglected to tell the inhabitants of the region this for millennia, considering they used to cross it with horse drawn wheeled vehicles until the advent of the internal combustion engine and the steam train.
Bush administration Secretary of State Colin Powell complained about his recent appearance in the headlines in connection with the Hillary Clinton private email server scandal.
Somebody neglected to tell the inhabitants of the region this for millennia, considering they used to cross it with horse drawn wheeled vehicles until the advent of the internal combustion engine and the steam train.
Bush administration Secretary of State Colin Powell complained about his recent appearance in the headlines in connection with the Hillary Clinton private email server scandal.