I received an email from UH about it. I asked for proposal. So donate $100,000 intially, defer income a couple of years. You get $37,000 tax deduction. Based on our ages we get $6,000+ annually for our lifetimes.
Really interesting based on current interest rates.
I have a client or two who have done this. One did it last year with a charity. We had some extra hoops for documenting it for the tax deduction which was a pain but we didn’t want the IRS to reject it. The others did it years ago and get their annuity payout annually.
Might have been a Charitable Gift Annuity (those might be the same thing as the terminology is confusing).
Thanks for posting this; I’ve never gotten very far in understanding the nitty gritty details.
The $37k deduction sounds good too…but reality is …well
Kind of hard to discuss without getting into specifics , which I don’t want to ask about,
and everybody’s case is different.
I’ve taken bonus depreciation a few times, so that’s
about the only understanding I have that may be comparable(?) of the net effect of the deduction Or maybe not.
And there is the feel good fact of knowing you make a significant, lasting contribution to UH.
Good to hear Eloise’s campaign is having an effect.
Yep, you have to be in the highest marginal income tax bracket to get that much. There are caps on how much you can deduct too (% of income).
The $37K is actually not the deduction either. You get a $100K deduction but it’s worth $37K.