Charitable Contribution Deductions (Part I of II) The Tax Cuts and Jobs Act of 2017 and subsequent tax acts, such as the CARES Act, have complicated charitable giving and estate planning. This two-part article provides an overview of the current state of the law as it concerns both. In this first part, the author focuses on charitable deductions. A charitable contribution deduction is allowable for a contribution actually paid in cash or other property before the close of the tax year (regardless of whether the taxpayer is on the cash or accrual method of accounting) and made for the use…
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Changes in the tax code have doubled the standard deduction, meaning that clients who donate money to charity may not see the tax benefits to which they are accustomed. Advisers can help by encouraging clients older than 70½ to use qualified charitable distributions and having younger clients use gift clumping strategies. Volume 1 of The Adviser’s Guide to Financial and Estate Planning has several chapters dedicated to charitable and giving strategies. To read the full article in Financial Planning, click: How to Realize Tax Benefits for Charitable Clients.
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Qualified charitable distributions can offer a tax-saving opportunity, and they may be more advantageous to consider under the new tax law. QCDs, which are available only for certain clients, count toward required minimum distributions and are excluded from income. To read the full article in InvestmentNews, click: Why Aren’t Clients Using QCDs? Help Them!