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. www.northtexasdentistry.com | NORTH TEXAS DENTISTRY 29