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Your generosity can pay off in more ways than one: when you give a charitable gift, the IRS will forgive a tax. In episode 48 of the YMYW podcast, Joe Anderson, CFP\xae and Big Al Clopine, CPA share how to make tax-smart charitable donations. Original publish date July 16, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.

00:00 \u2013 Intro

02:47 \u2013 \u201cHere\u2019s what does create a tax deduction for volunteering: your mileage to and from some type of charitable event you go to\u2026supplies you purchase directly for charity, and there are some fundraising expenses that will qualify for tax deductions. A lot of people miss those deductions. Those deductions reduce your taxable income which ultimately reduces the amount of taxes you pay.\u201d

04:36 \u2013 \u201cIf you\u2019re spending money for charitable purposes or for a specific charity, then those expenses may be tax-deductible.\u201d

07:00 \u2013 \u201cGive appreciated stock directly to charity because the tax deduction you get is the current value of the stock on the day you donated, and you don\u2019t have to pay tax on the gain.\u201d

12:04 \u2013 \u201cIf you can get a little more sophisticated in your tax planning and combine a couple of these different strategies together, you can save money in tax and actually create more income.\u201d

14:00 \u2013 \u201cIt\u2019s called a donor-advised fund. You can actually set up a fund at a brokerage firm, it\u2019s a special account where you control the investments and then you decide which charities get what amounts\u2026here\u2019s the key: the key is that the year you set up the account and put the money in the account \u2013 that\u2019s the year you get the tax deduction.\u201d

20:02 \u2013 \u201cYou can take money out of your IRA and give it directly to charity.\u201d

25:42 \u2013 \u201cThere\u2019s no harm in getting a tax benefit. The IRS encourages it; you just have to know what\u2019s available and what to do.\u201d

29:44 \u2013 \u201cOnce you get a better picture on how all of this looks, you\u2019ll make better decisions.\u201d

35:07 \u2013 \u201cYou have more control over taxes now than any other time in your life.\u201d