1. WAYS TO MAXIMIZE INCOME AND
TAX BENEFITS IN THE CURRENT
TAX CLIMATE
Presented by:
Charles Bennett Sachs
Principal
Private Wealth Counsel
(305) 444-1610
charles.sachs@pwcounsel.com
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12/10/2013

2. FOR THOSE WHO LIKE TO PAY
TAXES
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3. FOR THE REST OF US
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4. TODAY’S OBJECTIVE:
1. Understand how the new tax law
impacts you
2. Learn strategies to lower your taxes
before year end
3. Leave here learning at least one
thing important to you
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5. THE AMERICAN TAX PAYER
RELIEF ACT OF 2012 (ATRA)
More like
indigestion than
relief for higher
earners
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6. Quiz – Question #1
The New Income Tax rules for
2013 make giving to charity more
desirable.
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7. True
 There is an increased tax savings for
higher wage earners
 The “phase out” of deductions will
typically not affect your charitable
donation
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8. HOW TAX CHANGES IMPACT A MARRIED
COUPLE:
Income Below
$250,000
– No
changes for
you
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9. HOW TAX CHANGES IMPACT A MARRIED
COUPLE:
INCOME ABOVE $250,000
Additional
3.8% Surtax on
“Unearned” Income
(includes dividends, interest and capital
gains (any income that was not “earned”
from employment.)
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10. HOW TAX CHANGES IMPACT A MARRIED
COUPLE:
INCOME ABOVE $300,000
1. Personal exemptions
reduced by 2% for
each $2,500 of
income
2. Itemized deductions
reduced by 3% of
income
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11. HOW TAX CHANGES IMPACT A MARRIED
COUPLE:
INCOME ABOVE $450,000
1. A new top income tax
rate of 39.6%
2. a new long term
capital gains &
qualifying dividends
rate of 20%
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12. THE DOUBLE WHAMMY!
Happens when you add the 3.8%
(Unearned Income Tax) on top of:
 The Top Income Tax bracket: 39.6% + 3.8% =
43.6%
 The Top Capital Gains Tax: 20.0% +3.8% =
23.8%
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13. HOW TO REDUCE TAXABLE
INCOME
(THE USUAL SUSPECTS)
GIVE DIRECTLY FROM YOUR REGULAR IRA
 If you are at least 70&½ years of age, give as
much as $100,000 directly to charity
BENEFITS
 Counts toward your required minimum
distribution
 Not counted as income
 No income tax due
 Can’t push you into one of the higher tax brackets
 No risk of losing any of the charitable deduction
due to the new itemized deduction phase out
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14. GIVE DIRECTLY FROM YOUR REGULAR
IRA
 EXAMPLE (PHYLLIS, 72)
 Required to take a distribution
from her IRA for 2013 of $15,000.
 Wants to make a gift to
Weizmann for the same amount,
but is concerned about having to
pay income tax.
 She contacts her investment
professional who fills out a
distribution form requesting the
withdrawal from the IRA directly
to Weizmann.
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15. HOW TO REDUCE TAXABLE
INCOME (THE USUAL SUSPECTS)
 DEFER EARNED INCOME
 Contributions to retirement
accounts up to $23,000 a
year into a 401k and A 457
(if available)
 BENEFIT:
 Pay tax later when you are
hopefully in a lower tax rate
 Even if you’re not, you
received a tax free loan from
the IRS
 SAVINGS:
 As much as 39.8% on your
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tax bill
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16. HOW TO REDUCE TAXABLE
INCOME (THE USUAL SUSPECTS)
 TAX FREE BONDS (MUNICIPAL
BONDS)
The top tax rates on taxable bonds
 Florida: 39.6% + 3.8% = 43.6%
 New York: 39.6% + 3.8% +9% =
52.4%
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17. HOW TO REDUCE TAXABLE
INCOME (THE HIDDEN
SUSPECTS)
Elimination Of Capital Gains
From An Appreciated Asset:
EXAMPLE:
 Shari has a huge gain in
shares in XYZ Corp. her
grandma gave her 20 years
ago
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18. WHICH WOULD YOU RATHER
DO?
Sells Shares & Donates
Proceeds
Market Value
$110,000
Cost:
10,000
Gain:
$100,000
Top Rate: 23.8%
Tax Due:
$23,800
18Weizmann Gets:
Gives Shares Directly
To Weizmann
Market Value
$110,000
Cost:
10,000
Gain:
$100,000
Top Rate: 0%
Tax Due:
$0
Weizmann Gets:
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19. DONATE APPRECIATED
ASSETS
You’ve Held At Least A Year
 Stocks, Bonds, Privately-Held Stock, S-Corp Stock,
Restricted Stock
 Tangible personal property including works of art and
other collectibles*
 Commercial and Residential Real Estate (Full or Partial
Interest)
 Net leased property
 Limited Partnerships and LLC’s, Operating partnership
units
 Timber deeds, Royalties
 Notes, Deeds and Mortgages
 Mineral rights including oil & gas partnerships
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* To obtain a full market value deduction for a gift of tangible personal
property, the use by the donee institution must be related to its 12/10/2013
charitable purposes or functions. If not, the deduction is for cost basis
only

21. I want to
make a large
gift, but I am
afraid I will
outlive my
assets and be
left with no
income

22. Donor age 80, gives $100,000 and
the charity pays $6,800 per year for
life
Initial Gift
Weizmann
One Hundred Thousand and
Institute
no/100
1/1/2018
1/1/2017
12/3/2013
1/1/2016
100,00
0
1/1/2015
Annual Payments
1/1/2014
Donor
6,800
FiveThousandand
no/100
Annual Payments
Charity

23. 65
70
75
80
85
90
4.7%
5.1%
5.8%
6.8%
7.8%
9.0%
Rates are for
illustration only. Other
factors apply. Seek
your own legal and tax
advice on all gifts.
Exampl
e donor
ages &
rates

24. DONOR ADVISED FUNDS
Donor makes a charitable contribution, receives
an immediate tax benefit and then recommends
grants from the fund over time
 A donor-advised fund is like a charitable savings
account: a donor contributes to the fund as
frequently as they like and then recommends
grants to their favorite charity when they are
ready
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25. A Great Strategy Before Year
End
Use Highly appreciated Stock you’ve held more
than one year to establish a Donor Advised
Fund.
Benefits:
1. Elimination of the capital gain you would have
paid when you sell the stock
2. Weizmann sells the stock and immediately gets
cash
3. The fair market value of the gift is tax
deductable
4. Make gifts whenever you want
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26. BE TAX SMART WITH YOUR
MONEY
 Give directly from your
regular IRA
 Give securities that have
a large increase in value
 Establish a charitable gift
annuity
 Establish a donor advised
fund

27. PRESENTER
Mr. Sachs was a frequent guest commentator on the Nightly Business
Report and has addressed many National and South Florida organizations
with regard to charitable giving techniques.
Charles provides fee only, fiduciary representation to affluent and ultraaffluent clients, their families, and businesses as part of a long-term
consultative approach to help them achieve their investment, financial
planning, and charitable goals. He is a Principal with Miami based
Private Wealth Counsel and was most recently a Principal of nationally
recognized Wealth Management firm.
Mr. Sachs is a CERTIFIED FINANCIAL PLANNER™ Professional,
Chartered Financial Analyst, and earned a Master’s of Business
Administration with Honors from Florida International University. He
serves as President of the Financial Planning Association of Miami, Vice
President of the Estate Planning Council of Greater Miami, Board member
of the American Committee for the Weizmann Institute of Science, and
Professional Advisory Council member of the United Way and University
of Miami.
Mr. Sachs is host of the radio show “Straight Talk on Your Money” which
12/10/2013
27 airs on 880AM the BIZ (WZAB Miami) 3pm on Thursdays. He can be
reached at www.pwcounsel.com or (305) 444-1610.

28. IRS Circular 230 Disclaimer:
To ensure compliance with IRS Circular 230, any
U.S. federal tax advice provided in this
communication is not intended or written to be
used, and it cannot be used by the recipient or
any other taxpayer (i) for the purpose of avoiding
tax penalties that may be imposed on the
recipient or any other taxpayer, or (ii) in
promoting, marketing or recommending to
another party a partnership or other entity,
investment plan, arrangement or other
transaction addressed herein
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29. SIGNIFICANT TAX CHANGES FOR
HIGH WAGE EARNERS:
 A new top income tax bracket of 39.6% for couples earning
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more than $450,000 (this 4.6% higher change in the rate is
a 13% increase in taxes due for amounts over the
$450,000 threshold. Couples with $250,000 or more of
earnings will also be subject to a 0.9% additional Medicare
tax.
 A new 3.8 % Medicare tax on unearned income for
couples with income of $250,000. Unearned income
includes dividends, interest and capital gains (any income
that was not “earned” from employment.)
 A new 20% capital gains rate for those with income over
$450,000. In this case the capital gains rate increases
form 15% in 2012 to 23.8% since the 3.8% Medicare tax
will be due as well. (This is nearly a 60% increase in the
amount of tax due.)
 As a result of these changes high wage earners in 12/10/2013
particular need to focus more on strategies to minimize

30. Weizmann Institute of Science
 The American Committee for the Weizmann Institute of Science,
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founded in 1944, develops philanthropic support for the
Weizmann Institute of Science in Israel, one of the world’s
premier scientific research institutions.
 TheWeizmann Institute is a center of basic multidisciplinary
scientific research and graduate study, addressing crucial
problems in technology, medicine and health, energy, agriculture,
and the environment.
 The American Committee engages in various activities in order
to develop philanthropic funds for the Weizmann Institute from
individuals, families, foundations, and the business community;
educates the American public about the Institute’s research; and
represents the Institute’s interests in the U.S.
 Through their generous philanthropy, the American Committee’s
supporters become partners with Weizmann
Institute scientists in the search for answers to the most difficult
challenges facing humanity. Together, the American Committee,
other committees throughout the world, and the Weizmann
Institute comprise a flourishing humanitarian enterprise
12/10/2013
dedicated to improving the quality of life for all humankind
through scientific research.