North Texas Dentistry Volume 9 Issue 6 2019 ISSUE 6 DE | Page 29
Minimum Distribution (RMD). Note,
QCDs cannot be made to a Donor-
Advised Fund.
Usage of a Donor-Advised Fund.
This strategy works well when an
individual has appreciated securities
(stocks or mutual funds) that he or she
has owned for at least a year and would
now like to donate. Once donated to the
DAF, the assets can remain there until
you provide further instructions on
when the funds are to be disbursed to
your charity of choice. This is particu-
larly useful when an individual has
higher-than-usual income, such as
from the sale of a business or a large
bonus. The individual can front-load
several years’ worth of charitable gift-
ing in one year (DAF gift) to receive a
larger tax deduction that particular
year. Then, the individual can direct
smaller amounts be made from the
DAF (grants) to qualified charities over
the ensuing years.
2020 Tax Changes
At this point, there is no substantial
movement on tax legislation changes. All
eyes are on the election in 2020 and what
changes it will bring with tax policy.
We recommend that you consult with your tax advi-
sor before implementing ideas contained in articles
and announcements. Many ideas have complex-
ities and nuances that cannot be adequately
detailed in the article or announcement. We are not
responsible for errors, misinterpretations, or omis-
sions related to these articles or announcements.
Nor are we responsible for the applicability to your
personal, business, or tax situation. Please consult
your tax advisor first to discuss applying any of the
information contained in our articles or announce-
ments to your specific situation.
Paula Allgood, CPA
Paula works exten-
sively with start-up
companies and small
businesses, special-
izing in working with
dentists, physicians,
attorneys, franchises,
and sales companies. She is also active in
our wealth management business and has a
passion for helping clients achieve financial
independence. With an extensive tax back-
ground, she works to merge financial planning
goals with integrated tax strategies to achieve
maximum financial results and tax savings.
[email protected]
(972) 503-1040
www.bh-co.com
“Non-cash” gifts to organizations
such as Goodwill. It is a great time to
clean out your closets and get a tax
deduction too.
3
Loss harvesting in your taxable
investment portfolio for tax purposes.
4 Fully fund your Health Savings
Account for 2019.
5 Do a “back door” Roth conversion.
While Roth IRA contributions are not tax
deductible, the account grows tax-free –
which means you pay no taxes on quali-
fied Roth distributions during retire-
ment. However, most high income
taxpayers are not eligible to contribute to
a Roth. This is where the “backdoor”
Roth contribution comes into play. The
backdoor Roth strategy allows you to put
money into a Roth IRA even when you
are over the income threshold for making
direct Roth contributions.
6 Gifting to family members for estate
planning – while it does not reduce
income taxes, gifting is still commonly
used as an estate planning tool. The gift
exclusion for 2019 remains at $15,000
per person.
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