Need another idea to help you save on your tax liability?
Ciuni & Panichi is constantly looking for ways to assist you. Our Tax Group is always available if you have any questions.
Would you like to benefit a charity while reducing the size of your taxable estate, yet maintain an income stream for yourself? Would you also like to divest yourself of highly appreciated assets and diversify your portfolio with minimal tax consequences? Then you should consider a Charitable Remainder Trust (CRT). Let us tell you how it works:
- When you fund the CRT, you receive a partial income tax deduction and the property is removed from your estate.
- For a given term, the CRT pays an amount to you annually.
- At the term’s end, the CRT’s remaining assets pass to charity.
If you fund the CRT with appreciated assets, it can sell them without paying tax on the gain and then invest the proceeds in a variety of stocks and bonds. You will still owe capital gains tax when you receive CRT payments, but much of the liability will be deferred. And, only a portion of each payment will be attributable to capital gains. This also might help you reduce or avoid exposure to the 3.8% net investment income tax and the 20% top long-term capital gains rate.
Looking for more ideas on tax-smart gifts to charity, minimizing estate taxes, maintaining an income stream? How about diversifying your portfolio for the utmost tax reduction, contact Jim Komos at 216.831.7171 or jkomos@cp-advisors.com for more information.
Mr. Komos is the Partner-in-Charge of the firm’s Tax Department. He has experience in all facets of taxation for closely held businesses, their owners and key personnel. His clients are in a wide range of industries, including manufacturing, service, real estate, and construction. (c) 2014
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