{"id":56587,"date":"2019-01-09t12:00:20","date_gmt":"2019-01-09t17:00:20","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=56587"},"modified":"2019-01-10t16:18:47","modified_gmt":"2019-01-10t21:18:47","slug":"charitable-giving-under-the-new-tax-law","status":"publish","type":"post","link":"\/\/www.g005e.com\/2019\/01\/09\/charitable-giving-under-the-new-tax-law\/","title":{"rendered":"charitable giving under tcja"},"content":{"rendered":"
donor-advised funds can be a simpler option.<\/strong><\/p>\n by barry j. friedman, cpa<\/i> the new tax law nearly doubles the standard deduction for individuals and families, simplifying the filing process for millions of americans, but complicating giving strategies for many who have made a habit of deducting their charitable contributions.<\/p>\n more: <\/b>the latest fraud problem: synthetic identities<\/a> | why padding tax deductions is a risky proposition<\/a> | portability: sharing the estate tax exemption<\/a> | tariffs: what clients need to know now<\/a> indeed, an estimate from the washington, d.c., tax policy center is that the number of itemizers will drop from 46 million to 13 million. that means most taxpayers will have little tax incentive to donate cash or stock to charity, reducing giving by $13 billion to $20 billion a year. the idea is to accumulate enough deductions to itemize and write off more than the standard deduction. your clients will beat the expanded standard amount and maximize tax savings through itemization.<\/p>\n of course, this makes planning difficult for charities, as they usually think about annual budgets. fortunately, there’s another plan of action \u2013 donor-advised funds. they act like personal charitable savings accounts or private foundations, but without all the legal and accounting costs. they’ll allow contributors to make a donation and take a tax deduction in the same year. then, the contributors can direct their money to be paid to selected charities over time.<\/p>\n you can set up daf accounts at a community foundation or investment firm. clients can add assets whenever they want, deciding later what to donate and to which organizations.<\/p>\n clients tell the fund’s administrator how to spend the money by selecting eligible charities and the amount to be donated. dafs can also accept securities, and this is an excellent way to unload appreciated stocks without paying capital gains tax. when they put appreciated securities into a daf, they get to deduct the full current value from your taxable income that year. with the stock market at record highs, many investors have portfolios full of appreciated stock they can’t sell without paying capitals gains taxes. so it can be a great opportunity to transfer appreciated stocks, mutual funds and etfs into a donor-advised fund and get the deduction right away.<\/p>\n of course, tax writeoffs are not the only reason people make donations. there’s a genuine wish to do good! but it can’t be denied that there’s usually an enormous amount of giving in the last two days of a year, meaning that tax benefits definitely drive a lot of folks. by taking advantage of bunching and dafs, clients will allow your charitable urges to coincide with smart tax planning.<\/p>\n","protected":false},"excerpt":{"rendered":"
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\nbut there are tactics that can help the donors with their tax returns while still providing charities with badly needed funds. experts are suggesting that those on the cusp of itemization should consider giving twice as much to charities in one year \u2013 bunching up or pooling gifts \u2013 even if this means giving nothing the following year.<\/p>\n