Gifts That Reduce Your Taxes
YOU can help stop the suffering of animals now and into the future, and what’s more, you may be able to receive U.S. tax benefits for these generous gifts.
Retirement plan gift
Naming PETA as a beneficiary of your retirement account can be an attractive option for creating a legacy and reducing U.S. income taxes—and possibly estate taxes—for your loved ones.
Retirement plan gifts are an increasingly popular option for many PETA supporters. Because retirement plans are taxed differently from most assets, they may become a tax liability. Naming PETA as a beneficiary of your retirement account can be an attractive option for creating a legacy and reducing U.S. income taxes—and possibly estate taxes—for your loved ones.
U.S. income taxes to your beneficiaries on retirement assets can be as high as 37 percent. This means, for example, that a $100,000 IRA will be worth only $63,000 when it gets to your loved ones.
Naming PETA as a beneficiary of your retirement assets generates no U.S. income taxes. PETA is tax-exempt in the U.S. and eligible to receive the full amount of your gift. This means, for example, that a $100,000 IRA given to PETA will be worth the full $100,000.
To name PETA as a beneficiary of a retirement plan, simply contact your plan’s administrator and provide PETA’s tax identification number: 52-1218336.
Qualified Charitable Distribution (QCD)
An immediate giving option
Transferring funds from an IRA to PETA is an effective way to reduce taxes and protect animals worldwide right now.
You can make a Qualified Charitable Distribution (QCD) from your IRA and reduce your taxes. Here’s how it works:
- You must be 70½ or older.
- Your gift must be transferred directly from the IRA account to PETA.
- Your gift is a transfer of funds from your IRA to PETA, so while it does not generate a charitable tax deduction, it does not create taxable income for you.*
- You may transfer up to a total of $100,000 per year (individual) or $200,000 (married couple).
- If you are required to take a Required Minimum Distribution (RMD) from your IRA, your gift can count toward it, but your gift is not limited to your RMD. If you are using a checkbook issued by your IRA administrator to make your gift, please send your gift as early as possible to ensure that it qualifies for a distribution in the current year.
If you’re interested in this popular way to support PETA, take your next steps here.
* Due to recent changes in the laws governing retirement plans, please seek advice from your financial advisor regarding the tax implications of your gift, particularly if you plan to continue to contribute to your IRA after age 70 ½. Your gift may not qualify for these tax benefits.
Life insurance policy gift
It’s not uncommon for people to have a life insurance policy that has outlasted its original purpose.
If you do, you can use it (or a percentage of it) to reduce your taxes and create a gift to PETA that demonstrates your commitment to a better world for animals. Here’s how:
- Request a beneficiary designation form from your life insurance company and make PETA a full, partial, or contingent beneficiary.
- Sign over a fully paid policy. You’ll be allowed a tax deduction for your generosity.
- You could reduce your income taxes.
- You may receive additional tax deductions if you make annual gifts so PETA can pay the premiums.
- You can see firsthand how your gift supports animals if PETA cashes in the policy.
- You can create your legacy of action and compassion for animals. If PETA retains the policy to maturity or you name it as a beneficiary, the proceeds of your policy will be paid to PETA once it matures.
Gifts of real estate
You could consider donating real estate, such as a home, vacation property, undeveloped land, or commercial property.
Here are different types of these gifts:
- An immediate gift of real estate: Donating property outright to PETA frees you from the costs and responsibilities of ownership. If you have owned the property for more than a year, you’ll enjoy a charitable income tax deduction equal to the property’s full fair market value. You’ll eliminate any capital gain, and the gift reduces your future taxable estate.
- A gift of real estate by bequest: You can include a gift of real estate to PETA in your will or living trust, and you’ll be eligible for a charitable estate tax deduction upon your death.
- A retained life estate: You can donate your home to PETA but retain the right to live in it for the rest of your life, a term of years, or a combination of the two.
- A Charitable Remainder Trust: Establish a charitable remainder trust with appreciated real estate and receive income for life or for a fixed number of years. You will receive an immediate income tax deduction for a portion of your contribution to the unitrust and savings on capital gains taxes. You will also have the satisfaction of making a significant gift that benefits you now and PETA later.
Gifts of securities
You can use stocks, bonds, and mutual funds that have grown in value to create your legacy of action and compassion for animals.
- You may receive a charitable income tax deduction for the full market value of the securities (up to a maximum percentage of your adjusted gross income as dictated by tax law).
- You could avoid paying the capital gains tax on any increase in the value of the stock that you give.
If you are interested in funding a charitable gift annuity or charitable remainder trust with appreciated securities, please contact us for more information. Do not use these instructions to transfer securities for a life income gift.