The Palo Pinto Area Foundation is a non-profit organization chartered in 1969. Its sole purpose is to financially support the Palo Pinto County Hospital District, the hospital administration and its board of directors in the health care needs of the surrounding community and Palo Pinto County.
“As you consider your year-end tax planning, we hope you will consider making good use of the income tax charitable deduction,” said Diane Brown, Palo Pinto General Hospital’s director of Volunteer Services and Foundation. “Our 2012 year-end gift can significantly reduce your income taxes while providing meaningful support for us.”
No matter the income, if itemizing on your tax return you can almost always lower the amount of taxes owed through charitable giving, Brown said. The amount of tax savings will depend on the person’s or household’s tax bracket. Consider making more charitable gifts in years when you have the most income, and are in the top federal income tax brackets. If that is the case for 2012, consider accelerating future charitable gifts into this year.
“Giving is, of course, much more than tax brackets and charitable deductions,” Brown stated. “Your charitable gifts make an important difference in what we are able to accomplish at Palo Pinto General Hospital.”
Brown suggested some year-end gift ideas.
GIFTS OF CASH
“If you itemize, you can lower your 2012 income taxes by simply writing us a check payable to the Palo Pinto Area Foundation by Dec. 31st. There is no easier way to garner a 2012 year-end charitable deduction! Gifts of cash are fully deductible up to a maximum of 50 percent of your adjusted gross income. For example, if your adjusted gross income for 2012 is $50,000, up to $25,000 of charitable gifts may be deducted in 2012.”
GIFTS OF STOCK
“If you own stock, it is almost always more beneficial to contribute stock than cash. This is because a gift of appreciated stock generally offers a two-fold tax saving. First, you avoid paying any capital gains tax on the increase in the value of the stock. Second, you receive an income tax charitable deduction for the full fair market value of the stock at the time of the gift. Make sure you have owned the stock for a ‘long-term’ period of time (this generally means that you have held the stock for more than one year) to qualify for these significant tax advantages. Your gift of stock should be postmarked by December 31st. A stock broker or trust officer can arrange for a year-end gift of stock from your account by consulting the Palo Pinto Area Foundation broker.”