Lower Your Taxes

Please consult your tax advisor.

Enrich Your Community

There are several ways you can pay less taxes and increase your contribution to the Eastern Shore Public Library Foundation (ESPLF).

Bundling

No, you don’t need a bed and a board and two warm bodies to do this. If you make annual contributions to the library and other worthy charities, consider bundling your contributions and any other itemized deductions to the extent possible, so that every other year you maximize the opportunity to exceed the itemized deduction threshold.

Direct Stock Transfer

When you donate stock directly to the ESPLF’s broker, you pay no capital gains tax. Let’s say you have 100 shares of Feelgood Industries that you bought at $10 and the stock has risen to $110. If you sell the stock and write us a check, you also have to write the Federal and State Governments a check for the tax on a $10,000 capital gain.

Instead, if you transfer the stock directly to the ESPLF’s broker, the ESPLF gets the full $11,000, you pay no capital gain taxes, and you get a deduction of $11,000 on your tax return.

IRA or 401(k) Direct Transfer

Although the required minimum distribution (CRMD) has been waived for the year 2020, if you are 70 ½ years or older, direct transfers from an IRA or 401 (k) to the ESPLF will be deemed a qualified charitable distribution (QCD) deductible from gross income. You not only reduce taxable income, you can also take the standard deduction. Or, if you itemize, the lower gross income reduces some of the limitations imposed on itemized deductions.

$300 Above the Line Deduction

Add paragraph: The 2020 CARES ACT allows an “above the line” deduction of $300 ($600 if filing jointly) for charitable contributions. You may still take the standard deduction as well.

Isn’t it amazing? Shrewd donations benefit you and the library.

ESPL Foundation: 757-787-2500