By Sister Laura Goedken
We’ve all heard the saying, “The only things for certain in our life are taxes and death.” Changes in tax laws, however, are uncertain. After a decade of gradual changes in estate and gift tax rates and exemptions, Congress acted at the end of 2010 to create a two-year window of certainly that is scheduled to expire at the end of 2012.
No one can predict what Congress may do during an election year but, without Congressional action, limits to the value of charitable and other income tax deductions for higher-income taxpayers will return in 2013. The calendar year of 2012 may be the year for larger gifts. Donors will want to watch investment market values to asses if appreciated securities are good gifts. Gifts of cash will also yield good tax deductions.
In doing estate planning, charitable lead trusts and gifts of remainder interest in real estate are more attractive for many people because of the low interest rates at the present time. This is a good year to plan ahead in order to save on taxes.
For more information please contact Sister Laura Goedken, director of development, at (563) 888-4252 or by email at Goedken@davenportdiocese.org.