ASH'S YEAR-END TAX-WISE GIVING TIPS

It's never too early to start saving lots of money on your next year's income taxes -- federal as well as state.

You can also substantially increase your current income, as well as avoid probate.

Indeed, your charitable gift to ASH is worth even more to you now than most years in the past.

Here are some ways you can use your gift to ASH to significantly reduce your federal AND state income taxes, while at the same time providing important support for the war on smoking and for nonsmokers' rights.

* ASH is a national scientific and educational organization completely exempt from income tax under Section 501(c)(3) of the Internal Revenue Code

* ASH is entirely supported by contributions from citizens concerned about smoking and the rights of nonsmokers

* All contributions to ASH are fully deductible from federal and state (where applicable) income tax in accordance with applicable regulations

For more information about any of the following tips, or other matters related to making a gift, PLEASE CALL:
ACTION ON SMOKING AND HEALTH (ASH) AT (202) 659-4310.

If you make a donation to ASH by sending a check by the end of the year, your gift is fully tax deductible up to a maximum of 50% of your adjusted gross income.

Naturally, the amount of your tax saving will depend on your tax bracket. For example, if you are in a 31% income tax bracket and send ASH a check for $1000, you will save $310 dollars in taxes.

If you can make a year-end gift in the form of stock which has increased in value, as many have this year,
your tax savings can be even greater for TWO reasons.

FIRST, you avoid having to pay any capital gains tax on the increase in value of the stock; a tax you would ordinarily be required to pay if you sold the stock.

SECOND, you receive an income tax deduction based upon the increased value of the stock; not just on the amount that it originally cost you.

For example, if you purchased a stock for $1000, and it has now appreciated in value to $10,000, you would ordinarily have to pay a capital gains tax on $9000 if you sold it.

However, if you donate it to ASH, you are entitled to a tax deduction of $10,000 -- and you never have to pay a capital gains tax on any of the increase in value.

If you sell to ASH, for your original purchase price, a stock which has substantially increased in value, you get back the money you paid for it, as well as a very substantial tax savings from the charitable deduction.

Please call ASH to arrange the sale, and for information on how to calculate your tax saving.

Here's an interesting and little-known twist on the donation of stock. Suppose you have $100,000 of stock you bought years ago for $1,000.

You want to cash it in now to buy an annuity for yourself, but you don't want to pay capital gains tax on the $99,000 increase in value. Instead, give the stock to ASH, but retain a lifetime annuity payout.

ASH can then sell the stock and buy bonds, which then fund your annuity. You can then take an immediate deduction for the gift portion, and avoid being taxed immediately on most of the capital gain. This one is tricky, so be sure to consult with your tax advisor.

If you have a life insurance policy which you no longer need because your children are grown and self- sufficient, you can realize an immediate and very significant tax saving by using the policy to make a year-end donation.

To receive the donation, simply designate ASH as both the owner AND the beneficiary of the policy. Then you can take a tax deduction for the policy's replacement cost or cost basis, whichever is less. Call for more information.

Maybe you own a vacation home, some unused acreage, or even a vacant lot which you don't need anymore. But, if it has substantially increased in value through the years, selling it would force you to pay a sizeable capital gains tax.

However, if you donate the property to ASH, you get a tax deduction for the full increased value of the property, but never have to pay any capital gains tax.

And you can also continue to use a vacation home -- or even to live in a primary residence -- and still enjoy an immediate tax saving, just by making the gift to become effective upon your passing or the passing of a spouse.

Stocks which are paying low dividends to you now can be transformed into a vehicle to provide you with lifetime income which is substantially more each month than you now receive from the stocks.

Please call to learn how this works, and how you can avoid paying any capital gains tax on the stocks.

Presented as a public service by Action on Smoking and Health (ASH)
2013 H Street, N.W., Wash., DC 20006, Tel: (202) 659-4310

ASH, founded in 1968, is the national legal-action antismoking and nonsmokers' rights organization which helped ban cigarette commercials, started the modern nonsmokers' rights movement, pioneered using legal action against smoking, developed novel legal theories to protect children from tobacco smoke at home and in cars, get lower health insurance rates for nonsmokers, fought tobacco subsidies, and much much more.

ASH is entirely supported by tax-deductible contributions.
Material on this page may be freely reproduced, distributed, and circulated,
but please credit ASH, and include ASH's web address: http://ash.org

Raising Smoking as an Issue in Child Custody Disputes	Fighting Smoking in Condos and Apartments	File Complaints Against Smoking	The Deadly Toxins in Tobacco Smoke	The Dangers of Secondhand Smoke	Govt. Rpt. on Secondhand Smoke
Tobacco Class-Action Law Suits, and How You Can Participate	Sue-Big-Tobacco List of Anti-tobacco Lawyers	Tobacco Multistate Settlement	Do A Survey, Win a Free Prize	Smoking Facts & Statistics	Children and Smoking