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Tax Law (Questions About Taxes)/CCarryover Strategy and Tax Consequences

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One mo' time
I am planning to make a gifts to my alma mater with common stocks I own upon my passing. If I were still alive, I would benefit from the deduction as a charitable gift on my Federal Income tax. However, having passed, there should only be a final Federal and State Income Tax on whatever income was received for the year. Credit for the donation would probably exceed the amount allowed for the year, and since there would be no future filings, carryover would be lost. However, if the securities were to be willed to my daughter, with the understanding that they were to be gifted to the school, would she not benefit with credit for the donation which could carryover for her for another four years?
Also, since inheritances are not Federally taxed – I don't know about States (Washington, New Hampshire, North Carolina?) - would this not avoid affecting her AGI?
Thanks.
DBRJ

Answer
Dave,

Thanks for your question.

Couple of issues.  If the contribution of the stock occurs after your death, it would not be deductible on your 1040, but on the Estate return or the Estate income Tax return.

You cannot will the property to your daughter and include a stipulation that she contribute it to the school, it would be treated as if you gave it directly to the school.

None of the three states you mention have an inheritance tax.

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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