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Scott Thomas, ChFC®, CAP®, CKA®, RICP®

Income Tax Strategy For Generous People

I want to share a current income tax strategy you're not likely to hear from mainstream sources of tax information.  It's been around for a couple decades but many professionals don't look out for this straightforward strategy. It can be described this way: future charitable gifts and future tax deductions realized today.  One reason for this being so effective is the low interest rate environment tied to the government stated rates. Assuming that you're generous and give $10,000 a year or more, those future gifts and tax deductions taken today provides more value today.  I call this strategy "HyperBunching". The hyper link is a short video I created to explain it more.

Who can benefit today?  Here are some examples are:

1) Someone who sold a highly appreciated asset that could be real estate stocks business we're still in the same calendar year you could still make it happen.

2) Anyone who has had a current income bump or lump sum on: alimony, lottery winnings, a large attorney case, a signing bonus or other windfall.

3) You're currently in a top tax bracket and you're looking at a reduction in the few years – maybe you're going to retire.  You’re at 35 to 45% state and federal tax versus a lower rate, maybe half of that, this could be significant.

This is a donor driven, donor directed planning and it opens up some other planning options that you might not have known about.  For example, you could convert your IRA to a Roth because you were able to lump some future years of gifts.  If you'd like to reach out to me on this, I would love to talk with you about this tax strategy. Contact Scott Thomas at Scott@stewardshipmatters.net or (407)644-9411 ex. 2

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Check the background of this financial professional on FINRA's BrokerCheck