Tax Strategy
Case Study

The Johnsons followed an annual charitable gifting program, through which they supported their church and a variety of other causes that aligned with their values. 

One year, Mr. Johnson sold his business – generating a significant windfall.  But, with this windfall came a hefty tax bill.  The Johnsons wanted to find a way to save some taxes in the year of sale, without necessarily changing their usual pattern of gifting. 

If the Johnson family is an Alpha Principle client, our planning process may illustrate several options for charitable planning techniques, and the Johnsons may discover that they could fund a charitable trust by the end of the year that would allow them to accelerate the tax deductions for several years of planned charitable gifts.  While the tax deduction may be slightly discounted, a low interest rate environment minimized that discount.  As a result, the Johnsons might save taxes from the sale of the business, while maintaining a charitable gifting program that they could control in later years.