Contributions made on or before December 31 are credited as 2021 contributions. Contributions made January 1 or later are 2022 contributions. IRS regulations are quite clear that if we receive the donation in 2021 or it is postmarked 2021, then it is a 2021 contribution. Anything received in 2022 or postmarked 2022 is a 2022 donation. If you are making a donation for the Solemnity of Mary during December and want your contribution to be for 2022, you can date your check January 1, 2022 and it will be counted with the January 1 collection and credited to 2022 donations. It does not work the other way around with dating a check 2021, but not giving it to us until 2022. If you are making a stock donation, the date of the donation is the date you turn the stock over to our broker regardless of when we receive the check for it.
Stock Donations If you are making a stock donation, the date of the donation is the date you turn the stock over to our broker regardless of when we receive the check for it. With the recent surge in the Stock Market, you can avoid a large tax hit by donating your stock shares to SKD.
Talk to your tax advisor or broker to discuss the advantages to donating stock. Contact Deacon Randy to get the information on our broker for making a stock donation.
IRA Charitable Distribution There is a special tax benefit available to owners of a Traditional IRA who are 70 ½ or older. You may instruct your IRA Plan Administrator to distribute directly to a public charity, such as St. Katharine Drexel, up to and including $100,000 without the distribution being included in taxable income. The distribution does count toward the IRA owner’s Required Minimum Distribution. The donor does not
receive a charitable deduction, but the transfer is not treated as an income distribution to the donor. The donor enjoys the equivalent of a charitable deduction by avoiding the tax that ordinarily would have
been due on an IRA income distribution. This is a benefit if you itemize or not. If you have any questions on this, talk to your accountant or tax advisor.