Dear Cornerstone Family,
This is the time of year when most of us begin to ponder our financial situation, in particular, the tax consequences of what we do (or don't do) with "our money" before the end of the year. For anyone who knows me personally, you know I get a little animated when talking about the government and taxes. Bah humbug!
As a tax Scrooge, shouldn't I remember that Jesus himself encouraged us to pay taxes when he said to "render unto Caesar what is Caesar's"? While I could argue that Jesus was not actually keen on taxes (although He loved tax collectors as He does all of us), I think it is safe to say that He never commanded us to render more to Caesar than Caesar seeks!
For this reason, I wanted to share two, year-end tax reduction options that may be of mutual benefit to you and Cornerstone - especially as you pray about how to help our students.
1) Tax-Free IRA Transfers: On Friday, December 18th, the President signed a law that allows traditional and Roth IRA owners, age 70 ½ and older, to make tax-free transfers of up to $100,000 directly from their IRAs to qualified charitable organizations - such as Cornerstone! While you would not receive an income tax deduction for this gift, the distribution would be excluded from your 2015 taxable income, creating a "wash" for tax purposes. Such a transfer would also fulfill some or all of any 2015 required minimum distribution without increasing your taxable income. The new law is a permanent extension of the IRA charitable rollover.
2) Donate Appreciated Stock: Many of Cornerstone's donors probably have long-term appreciated stock. By donating such stock, you receive the charitable deduction, and you avoid paying the capital gain. Depending on your income tax bracket and the size of the gain, this can significantly reduce your tax liability and increase the money available to Cornerstone! If you want to explore this option, you can contact Beth Seo here at Cornerstone (email@example.com), and she will supply you with the paperwork needed to make the transfer to our wonderful brokers of The Meakem Group at Raymond James.
(Disclaimer: always check with your own tax accountant to confirm any deductions or other tax benefits.)
My prayer is that you will see Cornerstone's impactful work as a worthwhile investment - one made slightly sweeter by the above tax benefits! Thank you for being a part of God's ongoing work at Cornerstone.
202-575-0027 Ext. 104