Rapid Tax, How to Increase Your Income, Lower Your Taxes and Help Your Favorite Charity

Administrator — Thu, 27 Mar 2008 10:37:43 +0000

Given the fact that most seniors are interested in a secure income, reducing risk and lowering taxes, here is a planning technique to consider if you are trying to increase your income.

Maybe you have a CD that is coming up for renewal and you discover the rate is going to be lower. You could have some stocks or mutual funds that were invested for growth and are thinking about selling some off and re-investing in something that would pay you an income. The only reason you haven?t sold them is that you don?t want to pay the capital gain.

I would suggest including a charitable gift annuity in your list of options.

A charitable gift annuity is a combination of a gift to charity and an annuity. For older people, annuity rates may be 8%, 9% or even higher. Since part of the annuity payment is a tax free return of principal, the gift annuity may provide you with a substantial income. The combination of partially tax free income and the initial charitable deduction makes this planning device attractive.

While this arrangement has its own unique benefits, the rate of return is less than if you had bought a commercial immediate annuity. Therefore, your decision to use a gift annuity should include a desire to eventually leave money to a qualified charitable organization that you have an interest in, such as a church, school, hospital, etc.

Gift annuities are easy to set up. You simply transfer property to the charity and the charity promises to pay a given amount monthly, quarterly, semi-annually or annually to you for as long as you live. Alternatively, you could elect to have the payments paid to you and another person for as long as you both live. Or you could elect to have the payments made to you for the rest of your life and then to the second person for the rest of their life. But the maximum number of people per gift annuity is two.

Gift annuity rates are set by the American Council on Gift Annuities. Charities don?t have to use these rates, but most do. So you don?t have to out shopping for the best rate. Make your choice based on the charity that you would like to support.

There are two tax issues that you should take into consideration when comparing a gift annuity to your other alternatives.

The first is that if you fund the gift annuity with cash, part of the payment you receive is taxed (as ordinary income) and part of it is not taxed as it is treated as a return of principal. If you fund it with appreciated property, and are the recipient of the income, part will be taxed as capital gain, part as ordinary income and part could be treated as a return of principal and not taxed. However, if you live past your life expectancy, all later annuity payments will be ordinary income.

The second tax issue is that when you give the charity your asset in exchange for a life income, you get a large income tax deduction. For most people, this income tax deduction is so big it cannot be taken in one year. So there are provisions to spread the deduction out over the year of your donation and five more. Your accountant can tell you if this will eliminate income taxes for the next 6 years or not. Chances are good that it will.

Please note that I am only giving general guidelines about taxation. Before you set up a gift annuity, you should sit down with your tax advisor to determine the exact tax ramifications for your situation.

There are a number of charitable gift annuity options and applications. This brief overview has given you some of the basics. If this seems like it may fit, contact the charitable organization of your choice and get a proposal. Then sit down with your accountant and financial planner and have them help you compare a gift annuity with your other options.

Rapid Tax, Matti Bower Promises to Work Closely With Tallahassee to Lower Florida Property Taxes in Miami Beach

Administrator — Wed, 05 Mar 2008 08:30:46 +0000

Rapid Tax, Matti Bower Promises to Work Closely With Tallahassee to Lower Florida Property Taxes in Miami Beach

Miami Beach, FL (PRWEB) November 11, 2007 — Concerns over increased property taxes in the state of Florida have Miami Beach residents wondering what a new administration is going to do to address the issue. Mayoral candidate Matti Bower was quick to ease residents fears.

"I am going to work very diligently with Tallahassee to find solutions to further reduce property taxes in Miami Beach," Matti Bower stated.

Bower isn’t just talk. Through her tireless efforts, the Mayoral candidate Bower ensured voters (not special interests) had the chance to decide during the Nov. 6 elections what to do with the seven-acre site at 4701 N. Meridian Avenue should Mount Sinai Medical Center sell the Miami Heart Institute. See: http://www.miamisunpost.com/0906news

Miami Beach residents will be heading to the polls once again November 20 to decide who the next Mayor will be. Matti received the most number of votes this past week, however, she fell just short of the required 50 plus 1 percent.

Ms. Bower has been an outspoken advocate for Miami Beach. She recently received a ringing endorsement from the Miami Herald as well as Miami Beach’s popular outgoing Mayor, David Dermer.

Ms. Bower, a community activist before running for office, supports ‘controlled growth’ and responsive government, according to the Herald. See for endorsement.

Additionally The Miami Herald had this to say about Matti Bower:

"Ms. Bower wants to focus on the city’s fiscal health and continue making improvements in North Beach. A longtime advocate of controlled growth, Ms. Bowers says she would even slow down the city’s pace of growth if that were necessary to meet the Beach’s infrastructure needs. She also is concerned with traffic congestion, workforce housing and looking after the needs of children and the elderly."

The concerns over property taxes have been renewed in recent weeks as Beach residents began receiving their tax bills in the mail.

About Matti Bower

During Matti Bower’s eight years on the City of Miami Beach Commission, the City has enjoyed an increased quality of life and enhanced economic well-being. Born in Cuba, Commissioner Bower is a retired dental assistant who has resided with her husband Richard Bower in Miami Beach for more than 30 years. Committed to historic preservation, Commissioner Bower has chaired the Art Deco Weekend festival, and is a past member of the Miami Design Preservation Board of Directors. In addition, she has worked tirelessly to help register the Art Deco District on the National Register for Historic Places.

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