Our team loves to share great reads and yesterday a piece by Ben Steverman on Bloomberg.com was circulated. Be sure to take a few minutes to read the article but the overall premise he makes is to get your deductions this year because next year’s deductions may be less valuable. Of course, we were most interested in the portion of the article on charitable giving.
With Labor Day weekend behind us, we say good-bye to summer and gear up for our favorite time of year; giving season.
Still reeling from the sting of your tax bill for 2015? Nothing can ruin a beautiful spring day like writing Internal Revenue Service in the ‘Pay to the Order of’ section of a check. Perhaps you are an accountant or trusted advisor who had to deliver the exciting news to a client that they must make “additional contributions” to the government this year? Unfortunately, our time machine is still in development so we can’t go back to 2015 to right our wrongs, but moving forward, there is a way to turn potential compulsory contributions to Uncle Sam into charitable gifts for organizations you and your clients love.
Traffic on all northbound arteries is picking up as the snowbirds return home after their winter in the sunny south. For many of these retirees, their first order of business once home will be to visit their trusted advisors. If your clients share with you concerns about maintaining two homes, are you ready to discuss options with them?
In my previous post, I discussed how to properly evaluate the potential acquisition by a CRT of an illiquid position in a private equity investment, non-traded REIT, or limited partnership interest. Today, I will cover the other three areas I always advise clients to evaluate with illiquid gifts: self-dealing, valuation and liquidity.
I'm frequently asked whether a certain private equity investment, non-traded REIT, or limited partnership interest is a suitable investment for a charitable remainder trust (CRT). My response is a resounding, “Maybe!” With any investment other than cash, a security traded on an exchange, or an investment such as a mutual fund for which a daily net asset value (NAV) is available, there are five specific areas of concern I advise a client (or their advisor) to evaluate: