Employee of the Quarter: Natalie Nguyen

Congratulations to Natalie Nguyen for earning the title of Employee of the Quarter for Q3 2024! In addition to being a delight to work with, Natalie has contributed meaningfully to the firm this period via:

  • Quick turnaround on important requests: When a deliverable or document needs to get sent, she’s on it.
  • Being proactive on her projects: She is quick to seek out the next right thing to do.
  • Professional communication: Natalie gracefully balances the personal and business aspects of great workplace communication.
Thank you, Natalie! We’re lucky to have you here at Wheeler.

Year-End Gifting and Estate Planning Tips

The elegant black box with a glimmering gold ribbon lay delicately on the polished floor, promising a surprise waiting to be unwrapped through the art of gift wrapping

by Frank Miltenberger

With the year coming to a close, now is a perfect time to think about your gift and estate tax planning. Below, we have outlined key opportunities to consider before year-end and for next year.

Annual Gifting Exclusion Limits for 2024 and 2025

For 2024, the annual gift tax exclusion is $18,000 per recipient (or $36,000 for married couples who gift to any one recipient). This means you can gift up to this amount to as many recipients as you’d like without dipping into your lifetime gifting exemption.

Looking ahead to 2025, the annual exclusion will increase to $19,000 per recipient, allowing for a $38,000 combined gift by a married couple to any one recipient.

Estate Tax Planning Considerations

In addition, thanks to the lifetime federal gift and estate tax exemption, the total amount you can give over your lifetime without incurring federal estate or gift taxes, is currently $13.61 million per individual ($27.22 million for married couples) in 2024. In 2025, this will increase to $13.99 million per individual ($27.98 million for married couples).

It is important to note that under current law, these historically high exemption levels are set to expire at the end of 2025. Beginning in 2026, the exemption will revert to pre-2018 levels, which is estimated to be around $6 million per individual unless Congress acts. As such, you may want to take advantage of these exclusions before the end of 2025.

We are here to help you make the most of these opportunities. If you have any questions or want to discuss strategies that work best for you, please do not hesitate to contact us.

408-252-1800

Feeling Charitable? Be Sure You Can Substantiate Your Gifts

Two women enjoying a celebration with champagne glasses, smiling and toasting.

As the end of the year approaches, many people give more thought to supporting charities they favor. To avoid losing valuable charitable deductions if you itemize, you’ll need specific documentation, depending on the type and size of your gift. Here’s a breakdown of the rules:

Cash gifts under $250

A canceled check, bank statement or credit card statement will do. Or ask the charity for a receipt or “other reliable written record” that provides the organization’s name, the date and the amount of the gift.

Cash gifts of $250 or more

You’ll need a contemporaneous written acknowledgment from the charity stating the amount of the gift. That means you received the acknowledgment before the earlier of your tax return due date (including extensions) or the date you file your return. If you make multiple separate gifts to the same charity of less than $250 each (monthly contributions, for example) that total $250 or more for the year, you can still follow the substantiation rules for cash gifts under $250.

Noncash gifts under $250

Get a receipt showing the charity’s name, the date and location of the donation, and a description of the property.

Noncash gifts of $250 or more

Obtain a contemporaneous written acknowledgment from the charity that contains the information required for cash gifts, plus a description of the property.

Noncash gifts of more than $500

In addition to the above, keep records showing the date you acquired the property, how you acquired it and your adjusted basis in it. Also, file Form 8283.

Noncash gifts of more than $5,000 ($10,000 for closely held stock)

In addition to the above, obtain a qualified appraisal and include an appraisal summary, signed by the appraiser and the charity, with your return. (No appraisal is required for publicly traded securities.)

Noncash gifts of more than $500,000 ($20,000 for art)

In addition to the above, include a copy of the signed appraisal, not just a summary, with your return.

Finally, if you received anything in exchange for your donation, such as a book for making an online donation or food and drink at a fundraising event, ask the charity for the fair market value of the item(s). You’ll need to subtract it from your charitable deduction.

Saving taxes isn’t the primary motivator for charitable donations, but it may affect the amount you can afford to give. Substantiate your donations to ensure you receive the deductions you deserve.

Photo by Kut on RawPixel.com.