As you get ready to toast the new year, consider these smart ways to wrap up 2022 on a financial high note. Not only can you save on your taxes, but you can also make a huge impact at the Met.
Contribute appreciated stock instead of cash.
If you have owned a stock for more than one year and it has grown in value, you may be in line for two tax benefits: Avoid taxes on the appreciated value and qualify for an income-tax charitable deduction based on today’s market value if you itemize.
You will enjoy the same benefits with a gift of appreciated cryptocurrency.
You receive the same tax saving as if you wrote a check but with the added benefit of eliminating capital-gains taxes.
Timing: Complete all transfers by December 31. This includes by mail, electronic transfer, or hand delivery of the assets.
Sell depreciated assets and donate the cash.
Unfortunately, 2022 wasn’t good for all portfolios. If you would like to support the Met but your stocks or cryptocurrency have fallen in value, it is best to sell them first and then donate the cash. This allows you to record the loss as a tax deduction and qualify for an income-tax deduction for the gift.
Timing: Complete all transfers and cash donations by December 31.
Open a donor-advised fund.
Contribute to a donor-advised fund and enjoy a tax savings on that amount when you itemize.
Timing: Complete the contribution by December 31. You do not have to designate the funds this calendar year to receive the tax benefits.
Make a qualified charitable distribution of IRA assets.
If you are 70 and a half years old or older, you can give any amount up to $100,000 per year from your IRA directly to the Metropolitan Opera. You will not pay income taxes on the transfer. If you are required to take minimum distributions, you can use this transfer to satisfy all or part your obligation.
Timing: We must receive your gift by December 31 for your donation to qualify this year. If you have check-writing features on your IRA, please be aware that your check must clear your account by December 31 to count toward your required minimum distribution for the calendar year.
Help offset the tax liability on a retirement-account withdrawal.
If you are 59 and a half years old or older, you can take a distribution from your retirement-plan account and then make a gift to the Metropolitan Opera without an early-withdrawal penalty. If you itemize your deductions, you can take a charitable deduction for the amount.
Timing: We must receive your gift by December 31 for your donation to qualify this year.
How to Make a Tribute Gift
Any year-end gift can be made in a loved one’s name. This can be a heartfelt way to celebrate someone important in your life or to remember someone.
The Countdown Is On
As we approach the end of the year, we are happy to help ensure that you realize the greatest benefit for your hard-earned assets. Please contact Pamela Bennett at 212.870.7388 or encoresociety@metopera.org.