There are a variety of ways to continue your compassionate support for Greater Rochester Habitat for Humanity that may help reduce income taxes, estate taxes and capital gains taxes.
Retirement plan: Retirement plan gifts are a popular gift option for many Greater Rochester Habitat for Humanity supporters. Because retirement plans are taxed differently than most assets, they may actually become a tax liability. Naming Greater Rochester Habitat for Humanity a beneficiary of your retirement account can be an attractive option for leaving a legacy and reducing income and possibly estate taxes for your loved ones.
Income taxes to your beneficiaries on retirement assets can be as high as 35%. This means, for example, that a $100,000 IRA will be worth only $65,000 when it gets to your loved ones.
Naming Greater Rochester Habitat for Humanity as a beneficiary of your retirement assets generates no income taxes. Greater Rochester Habitat for Humanity is tax exempt and eligible to receive the full amount, bypassing any income taxes. This means, for example, that a $100,000 IRA given to Greater Rochester Habitat for Humanity will be worth the full $100,000. Contact your plan’s administrator to specify Greater Rochester Habitat for Humanity, as a beneficiary. Our Federal Tax ID Number is 13-3281487.
Life Insurance Plan: A gift of life insurance is an affordable way to secure tax savings during your lifetime while continuing your support for Greater Rochester Habitat for Humanity. Benefits include:
- You can give a significant gift from disposable income at a fraction of the value.
- Tax savings may be realized when you file your taxes.
- Your donation could reduce final taxes of your estate.
- Insurance gifts pass outside of the estate.
Gifts of real estate: When you transfer ownership of real estate to Greater Rochester Habitat for Humanity, you may be able to reduce your taxes by deducting the appraised value of the property from your income tax liability and by avoiding capital gains tax liability. This kind of gift also removes the property from your estate and relieves you of any future management worries. If interested in this type of gift, please contact Ethel Duble to discuss further.
Gifts of stock: By giving stock bonds, and mutual funds that have appreciated in value, you may receive a charitable income tax deduction for the full market value of the stock (up to a maximum of 30% of your adjusted gross income) and avoid paying the capital gains tax on any increase in the value of the stock. For example, you give a gift of $5,000 in stock that you purchased for $500. You save $1,350 on your income taxes (if you’re in a 27% tax bracket), and you avoid paying capital gains tax on the $4,500 of appreciation.
