October 20, 2006
In this weeks Financial Chaos Topic we discuss the following:
A Creative Way to Give and Avoid Taxes at the Same Time
If you give money to your church and other charitable groups and have appreciated mutual funds, stocks, or other holdings you need to check out this recent press release from Fidelity. Fidelity Lowers Minimums to their Charitable Gift Fund
If you are Charitable and Sick that the Government makes you take taxable RMD from your Retirement Accounts (read this)
The Pension Protection Act of 2006 included some great new opportunities for charitable giving. Generous individuals over 70.5 can now give to their favorite charitable organization from their IRAs and the gifts count towards their required minimum distribution (RMD). There is no charitable income tax deduction, but also no inclusion for taxes. By making a gift to charity from your IRA you can lower or meet the required minimum distribution for that year. This allows you to accomplish your charitable goals and reduce your tax liability.
Wesley Snipes joins the ranks of Willie Nelson and other not so tax smart celebrities. Don’t mess with the only organization that can show up and just take your stuff!
Talking about surrounding yourself with yes men. Wesley Snipes has been indicted for an insane tax scheme. Somehow Wesley thought that he could make $19 million in 1997 and not pay any taxes. The Smoking Gun